Does the Aerus Franchise Agreement specify what happens if a franchisee's agents violates any other agreement with the company?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be permitted, at its own cost and expense, to hire and retain such employees, consultants and agents as Franchisee may deem necessary in establishing and operating the Franchised Business.
Additionally, Franchisee shall be permitted to employ or engage, on forms reasonably acceptable to Company and which grant no greater rights and retain at least the same restrictions and limitations as this Agreement, Sales Representatives who shall operate in accordance with this Agreement and the Manuals, including the Policies and Procedures.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, franchisees are permitted to employ or engage Sales Representatives who must operate in accordance with the Franchise Agreement and the Manuals, including the Policies and Procedures. These Sales Representatives must be engaged on forms reasonably acceptable to Aerus, and these forms must grant no greater rights and retain at least the same restrictions and limitations as the Franchise Agreement.
This means that Aerus franchisees have the authority to hire their own employees, consultants, and agents to help them run their franchise. However, Aerus retains some control over the terms of engagement for Sales Representatives, ensuring that their agreements align with the overall franchise agreement.
While the FDD excerpt specifies that Sales Representatives must operate in accordance with the Franchise Agreement and Manuals, it does not explicitly detail the consequences if a Sales Representative violates another agreement with Aerus. It is important for prospective franchisees to understand the potential liabilities and ramifications associated with the actions of their agents and employees. Therefore, it would be prudent for a potential franchisee to seek clarification from Aerus regarding the specific repercussions of such violations and how they might affect the franchisee's standing.