Can an Aerus franchisee use the Marks in connection with any business other than the Franchised Business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Exclusivity and Non-Competition.
- A. During the Term, neither Franchisee, nor its Operating Principal, or any other owner, shall (1) promote the sale of, or sell, directly or indirectly, any products or services that are similar in nature to, or that are substitutes for, the Products, (2) undertake or participate in any business or activity that is competitive in nature with the System or any of the Products, or with Company's, or any of Company's Affiliates', now existing or hereafter developed businesses or systems, or (3) use any of the Customer Data for any reason other than operation of the Franchised Business. Further, the Approved Location may be used for the operation and conduct of the Franchised Business only and for no other use. Franchisee may not use the Marks in connection with any business or activities other than the Franchised Business. Company may in the future modify, expand or supplement the System or modify or add to the Products offered hereunder and Company or any of Company's Affiliates may in the future develop or offer new businesses or systems. In either event, if Company determines, in its reasonable discretion that any behavior of Franchisee previously not in violation of this Section later violates this Section, Company may require that Franchisee cease any such behavior upon written notice to Franchisee.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 54–56)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using Aerus's trademarks (the "Marks") for any business or activities other than their franchised Aerus business. This restriction is in place during the term of the franchise agreement. This means an Aerus franchisee must operate solely under the Aerus brand and system for the specific location and services outlined in the agreement.
This restriction ensures brand consistency and prevents franchisees from diluting the Aerus brand by associating it with other ventures. It also protects Aerus's brand identity and reputation. Franchisees must adhere strictly to the terms and conditions outlined in the franchise agreement, policies and procedures, and manuals regarding the use of the Marks.
The FDD specifies that the approved location can only be used for the Aerus franchised business and no other purpose. This reinforces the exclusivity of the franchise and prevents franchisees from operating other businesses from the same location. Aerus retains the right to modify, expand, or supplement the system and product offerings, and franchisees are obligated to comply with these changes. This includes potentially executing additional agreements and paying royalties for new products or services.