Is an Aerus franchisee allowed to advertise goods or services over the internet that are similar to those offered at the franchised business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything herein to the contrary, without Company's prior written approval, Franchisee shall not (1) conduct the Franchised Business under any actual or assumed name other than the Approved Name, (2) sell to any person or entity that is not an Approved Customer, (3) advertise, market or solicit sales outside of the Area of Responsibility, (4) sell to any person not residing within the Area of Responsibility, (5) conduct any aspect of the Franchised Business by, through, over or on the internet or world wide web, including without limitation, advertising, marketing and solicitation, unless or until Company establishes a Company sponsored program for such conduct by Franchisees and, then, only as part of and in accordance with such program, (6) use any trade name, trademark or service mark in connection with the Franchised Business other than the Marks (and then only in strict accordance with the terms and conditions of this Agreement, the Policies and Procedures, the Manuals and any specific guidelines imposed by Company), (7) advertise or sell any product or service from the Approved Location or through the Franchised Business bearing any trade name, trademark or service mark other than the Marks, (8) sell any product or service that is not a Product, or (9) permit any Product to be sold from any
physical location other than the Approved Location, by any Person other than an authorized representative of Franchisee or in a manner otherwise inconsistent with the System.
- H.
Notwithstanding the foregoing and without limiting the generality of the provisions contained in this Section, Franchisee acknowledges that Company and its Affiliates and existing franchisees, distributors and licensees operate existing businesses and systems, and may in the future establish and operate new businesses and systems, including Aerus Businesses, under the same and other assumed names, trade names and trademarks as the Marks, which businesses and systems may offer or sell products and services similar or identical to the Products, and may do so (or grant licenses or franchises for third-parties to do so) within any part of the Area of Responsibility (except as limited by the rights granted hereunder).
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are generally restricted from independently advertising or selling goods and services over the internet. Specifically, an Aerus franchisee cannot conduct any aspect of the franchised business online, including advertising, marketing, or soliciting sales, unless Aerus establishes a company-sponsored program for franchisees. If such a program exists, franchisees can only participate as part of and in accordance with the program's guidelines. This restriction ensures that all online activities align with Aerus's brand standards and marketing strategies.
This policy has significant implications for prospective franchisees. It means that franchisees cannot create their own websites or online marketing campaigns to promote their Aerus business without prior approval and adherence to the company's established program. This limitation could impact a franchisee's ability to reach customers through online channels and may require them to rely on Aerus's corporate marketing efforts. It is important for potential franchisees to understand the details of any company-sponsored internet programs, including any associated costs or requirements.
Furthermore, the FDD states that Aerus and its affiliates may operate businesses and systems, including Aerus businesses, that offer similar or identical products and services within the franchisee's Area of Responsibility. These businesses can operate under the same or other names and trademarks. This clause highlights that Aerus retains the right to compete with its own franchisees, which could affect a franchisee's market share and profitability.
In summary, while Aerus franchisees are restricted from independently engaging in online advertising and sales, they may have the opportunity to participate in company-sponsored programs. However, they should also be aware that Aerus and its affiliates may operate competing businesses within their territory. Prospective franchisees should discuss the specifics of the internet advertising program and the potential for competition from Aerus with the franchisor before investing.