Can Aerus franchisees assign their rights to use the "Electrolux" and "Lux" trademarks to another party?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ii. In connection with the foregoing, there are a series of license instruments granting to us the right to use and license to you for use on a non-exclusive, non-assignable basis (subject to the terms and conditions of the Franchise Agreement and the Manuals), the "Electrolux", "Lux" and derivative trademarks for use in the sale, marketing, distribution and repair of vacuum cleaners and related accessories. The obligations of the licenses have been incorporated into the Manuals, which must be strictly adhered to. Aktiebolaget Electrolux may terminate the Electrolux Sublicense Agreement upon written notice if We, you or any of our other franchisees breach the Electrolux Sublicense Agreement. Material uncured breach of the license terms by you or any other franchisee may result in termination of the license for all franchisees.
Source: Item 13 — Trademarks (FDD pages 47–51)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are granted a non-exclusive and non-assignable license to use the "Electrolux" and "Lux" trademarks. This means that while franchisees have the right to use these trademarks for the sale, marketing, distribution, and repair of vacuum cleaners and related accessories, they cannot transfer or assign this right to another party. This restriction is subject to the terms and conditions outlined in the Franchise Agreement and the Manuals. The trademarks "Electrolux" and "Lux" are owned by Aktiebolaget Electrolux, a Swedish company, which licenses their use to Aerus LLC and Aerus Canada, Inc., Aerus's affiliates, who then sublicense them to Aerus franchisees.
The non-assignable nature of the trademark license is a significant point for potential Aerus franchisees. It ensures that the rights to use the "Electrolux" and "Lux" trademarks remain strictly with the original franchisee and cannot be sold or transferred to a third party. This provision helps maintain control over the brand and ensures consistent quality and standards across all franchise locations.
Furthermore, the FDD states that Aerus may modify or change the marks permitted to be used by franchisees, including discontinuing the use of any of the marks. Franchisees must comply with Aerus's directions regarding trademark usage at their own expense. This highlights the importance of adhering to Aerus's guidelines and any updates to those guidelines to maintain compliance and avoid potential penalties or termination of the franchise agreement.