Can an Aerus franchisee sell to someone 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 market areas of other franchisees and to ensure that each franchisee focuses on developing their specific territory.
This limitation means that an Aerus franchisee's marketing and sales efforts should primarily target customers within their assigned area. While the FDD does not explicitly define the consequences of violating this rule, it generally implies potential penalties or termination of the franchise agreement for non-compliance. Franchisees need to be diligent in verifying the location of their customers to avoid inadvertently breaching the agreement.
It is important for prospective Aerus franchisees to understand the boundaries of their Area of Responsibility and to seek written approval from Aerus if they intend to sell to customers outside of this area. This restriction is a common practice in franchising to maintain territorial exclusivity and prevent conflicts between franchisees. Franchisees should discuss the specifics of their territory and any potential exceptions with Aerus during the due diligence process.