Is an Aerus franchisee allowed to sell to customers outside of their Area of Responsibility?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
rmit or authorize any person or entity other than Franchisee to establish a physical location for the operation of any Aerus Business under any of the Programs listed in Recital C within the area identified as the Protected Area in Schedule 1, attached hereto (the "Protected Area").
- G. 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 an 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 an App
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 selling to customers outside their designated Area of Responsibility. Specifically, without prior written approval from Aerus, a franchisee cannot sell to individuals not residing within their assigned territory. This restriction is in place to protect the market areas of other franchisees and the company itself.
This limitation has significant implications for a prospective Aerus franchisee. It means the franchisee's business operations and marketing efforts must primarily focus on customers within their Area of Responsibility. While this provides a degree of territorial protection, it also restricts the franchisee's potential customer base. The franchisee needs to thoroughly understand the demographics and market potential within their assigned area before investing in the franchise.
However, the FDD also indicates that Aerus and its affiliates retain the right to operate businesses and systems, including Aerus businesses, within any part of the Area of Responsibility, potentially offering similar products and services. This clause introduces a level of competition from within the Aerus system itself. A prospective franchisee should carefully evaluate the potential for such internal competition and its possible impact on their business.
Furthermore, franchisees are obligated to provide service, including warranty service, to all owners of Aerus products residing within their Area of Responsibility, regardless of where the products were originally purchased. This requirement could lead to additional service burdens and costs for the franchisee, as they may be required to support customers who did not directly contribute to their sales revenue. Therefore, understanding the service obligations and potential costs associated with them is crucial for any potential Aerus franchisee.