Is an Aerus franchisee obligated to indemnify Aerus and its affiliates against claims resulting from the use of the "Aerus" mark?

According to Aerus's 2025 Franchise Disclosure Document, franchisees are obligated to indemnify Aerus and its affiliates against claims resulting from the franchisee's use of the Aerus marks on products or materials. This obligation extends to the use of the "Electrolux" and "Lux" trademarks as well. This means that if a third party brings a claim against Aerus or its affiliates due to the franchisee's use of these marks, the franchisee will be responsible for covering the costs of defending against the claim and any resulting damages. This requirement is in place to protect Aerus and its affiliates from liabilities arising from the franchisee's actions.

This indemnification requirement is a significant responsibility for Aerus franchisees. It means they must be diligent in their use of the Aerus, Electrolux, and Lux trademarks to avoid potential claims. This includes ensuring that all marketing materials, products, and other uses of the marks comply with Aerus's standards and guidelines. Franchisees should also be aware of any potential intellectual property issues in their local market and take steps to avoid infringing on the rights of others.

The FDD also states that Aerus or its affiliates have certain inspection rights related to the use of the "Aerus" and "Beyond" trademarks, including the ability to inspect the franchisee's premises for proper use of the mark. Aerus may also issue trademark usage guidelines from time to time governing the franchisee's use of the Marks. If a franchisee fails to conform to the quality requirements or usage guidelines, Aerus may terminate or suspend the franchisee's license to use the Marks.

In addition, the Aerus franchisee may be required to assist in the protection of the mark. This could involve notifying Aerus of any apparent infringement of or challenge to the franchisee's use of any of the Marks or of any claim by any person of any rights in any of the Marks. Aerus has the right to take such action as it deems appropriate, including the right to control any settlement, litigation, or proceeding arising out of any such alleged infringement, challenge, or claim or otherwise relating to any of the Marks. The franchisee must execute any and all instruments and documents, render such assistance, and do such acts or things as may, in Aerus's reasonable opinion, be necessary or advisable to protect and maintain Aerus's or its affiliate's interests in any litigation or other proceeding or to otherwise protect and maintain Aerus's, its affiliates or any other interested party's interest in the Marks.