Can an Aerus franchisee sell to individuals not residing within their Area of Responsibility?
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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees generally cannot sell to individuals residing outside their designated Area of Responsibility without prior written approval from Aerus. This restriction is in place to protect the territorial rights of other franchisees and to ensure that each franchisee focuses on developing their assigned market.
This limitation means that an Aerus franchisee must primarily concentrate their sales and marketing efforts within their Area of Responsibility. While the FDD does not explicitly define 'Area of Responsibility,' it is typically outlined in Schedule 1 of the franchise agreement. Franchisees need to obtain written permission from Aerus to make sales to customers outside of this area. This requirement helps maintain a structured distribution network and prevents conflicts between franchisees.
This restriction has several implications for prospective franchisees. It is crucial to understand the boundaries of the Area of Responsibility and to assess its market potential during the due diligence process. Franchisees should also consider the potential impact of this restriction on their sales strategy and revenue projections. If a franchisee anticipates opportunities to sell outside their territory, they should discuss the possibility of obtaining written approval from Aerus with the franchisor beforehand.
In summary, while the Aerus franchise agreement aims to provide franchisees with a defined territory, it also imposes restrictions on selling outside that territory without prior approval. This is a common practice in franchising to protect market distribution and minimize conflicts between franchisees.