Must an Aerus franchisee obtain approval of their proposed location before signing a purchase or lease agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease an Approved Location from which to operate your Franchised Business. You must obtain our approval of your proposed location before you sign a purchase or lease agreement. Under your Franchise Agreement, if you lease a location for your Franchised Business, we may require you and your landlord to sign a lease rider, through which your landlord will grant us the right to assume your rights and obligations under the lease if you breach the lease agreement or your Franchise Agreement. A sample lease rider is attached as Exhibit 1 to each Franchise Agreement.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–33)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees must secure approval for their proposed business location before finalizing any purchase or lease agreements. This requirement ensures that the location meets Aerus's standards and specifications, which are crucial for maintaining brand consistency and operational efficiency.
The FDD specifies that franchisees must purchase or lease an 'Approved Location' to operate their franchised business. Securing Aerus's approval beforehand is a mandatory step, highlighting the franchisor's control over site selection. Additionally, if a franchisee chooses to lease a location, Aerus may require both the franchisee and the landlord to sign a lease rider. This rider grants Aerus the right to assume the franchisee's lease obligations if the franchisee breaches either the lease agreement or the Franchise Agreement itself.
This stipulation protects Aerus's interests by allowing them to maintain control over the location and continue operations even if the franchisee fails to meet their obligations. A sample lease rider is included as Exhibit 1 to each Franchise Agreement, providing franchisees with an example of the terms they may encounter. This requirement is fairly common in franchising, as franchisors want to ensure the location remains an Aerus business even if the franchisee is terminated.