What does the Aerus Franchise Agreement grant to the franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You will operate the Franchised Business according to the terms and conditions of the Franchise Agreement ("Franchise Agreement") which, among other things, grants you a limited license to use those Marks and elements of the System which we designate for your use in connection with the applicable franchise program. The Franchise Agreement for the Standard Program can be found attached to this Disclosure Document at Exhibit 2(a) and the Franchise Agreement for the Associate Program can be found attached to this Disclosure Document at Exhibit 2(b). Additionally, you also must comply with the standards, specifications and directives contained in the Manuals.
As our franchisee, you will offer and sell the Products designated by us under the franchise program under which you operate. Most of the Products in your inventory will be held on consignment until sold. Consequently, we or our affiliate will determine the prices at which the Products will be sold. The Products that you hold on consignment and offer for sale are referred to in this Disclosure Document as the "Consigned Products." When you sell any Consigned Products, you will be required to remit payment to us or our affiliate. The amount of that payment is referred to as the "Standard Allocation". The Standard Allocation is established by us (in the Manuals or otherwise in writing) and will vary based upon the franchise program you elect and your sales volume. We or our affiliate will provide to you an initial and ongoing inventory of Consigned Products. In connection with these Consigned Products, you must maintain with us a security deposit ("Security Deposit").
You will accomplish a substantial portion of your sales through in-person marketing and product demonstrations, but also will maintain a store front at an Approved Location, where you will offer and display Products for retail sale, conduct product demonstrations and receive products from customers for trade-in, service and repair.
You will have a "Protected Area" in which you have certain limited territorial protections and an "Area of Responsibility" in which you will have certain rights and responsibilities. See Items 12 and 16.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–15)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Franchise Agreement grants franchisees a limited license to use designated Marks and elements of the Aerus System. This allows franchisees to operate under one of two programs: the Standard Program or the Associate Program, each offering and selling specific products, identified by certain Marks, and utilizing elements of the Aerus System as determined by Aerus. Franchisees must also adhere to the standards, specifications, and directives outlined in the Manuals.
Aerus franchisees have the right to market, distribute, and sell air purification, water purification, water conditioning, floor care, and other environmental products, including accessories and supplies, for homes and businesses. They can also provide testing for indoor environmental contaminants and sell related products, services, and treatments. Additionally, franchisees can perform product repair, maintenance, and related services for Aerus products and certain competitors' products. A significant portion of sales is achieved through in-person marketing and product demonstrations, requiring franchisees to maintain a storefront at an approved location for retail sales, product demonstrations, and receiving products for service and repair.
Furthermore, Aerus franchisees are granted a "Protected Area" with limited territorial protections and an "Area of Responsibility" with specific rights and responsibilities. The Standard Program allows franchisees to operate multiple approved locations, including Satellites and Licensed Outlets (subject to Aerus's approval and any state-specific regulations), while the Associate Program does not permit additional locations. Franchisees also have the option to sell Beyond Products by signing the Beyond Addendum, which grants the right to market and sell these products within their Area of Responsibility, subject to an additional initial fee and training requirements.