Can Aerus franchisees face competition from other franchisees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
to sales made to persons or entities who reside outside of the Area of Responsibility.
You may face competition from other franchisees or franchisee-owned outlets within or outside of your Area of Responsibility and/or Protected Area or from other channels of distribution or competitive brands we control. You may face competition from other franchisees or franchisee-owned outlets having physical locations outside of your Protected Area or from other channels of distribution or competitive brands we control.
Other than upon our prior written approval, you must not (1) conduct the Franchised Business under any actual or assumed name other than the trade name approved in advance by us, (2) sell to any person or entity that is not an Approved Customer, (3) conduct any aspect of the Franchised Business by, through or over the internet or world wide web, including without limitation, advertising, marketing and solicitation, unless or until we establish an Aerus sponsored program for such conduct by Franchisees and, then, only as part of and in accordance with such program, (4) 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 the Franchise Agreement, the Policies and Procedures, the Manuals and any specific guidelines
imposed by us), (5) unless authorized in advance by us, advertise or sell any product or service from an Approved Location or through the Franchised Business bearing any trade name, trademark or service mark other than the Marks, (6) sell any product or service that is not a Product, or (7) permit any Product to be sold from any physical location other than an Approved Location, by any Person other than your authorized representative or in a manner otherwise inconsistent with the System.
We and our affiliates and existing franchisees, distributors and licensees operate existing businesses and systems, and may in the future establish and operate new businesses and systems, including Aerus Businesses, under the same and other assumed names, trade names and trademarks as the Marks, which businesses and systems may offer or sell products and services similar or identical to the Products and Beyond Products and may do so (or grant licenses or franchises for third-parties to do so) within any part of the Area of Responsibility (provided that we may not establish a physical location for the operation of an Aerus Business within your Protected Area). The right granted under the Franchise Agreement is only for the operation of the Franchised Business in accordance with the Franchise Agreement. You are granted no rights of any kind of any other business or system that may now or in the future be owned, operated or licensed by us or any of our affiliates. We and our affiliates retain all rights not specifically mentioned in this document.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees may face competition from various sources. Specifically, Aerus franchisees may encounter competition from other franchisees or franchisee-owned outlets both within and outside their Area of Responsibility and/or Protected Area. Additionally, competition may arise from other channels of distribution or competitive brands that Aerus controls. This means that while franchisees are granted an Area of Responsibility, it does not guarantee complete protection from competition.
Aerus and its affiliates also operate existing businesses and systems, and may establish new ones, including Aerus Businesses, under the same or different names and trademarks. These businesses can offer similar products and services within any part of the franchisee's Area of Responsibility, although Aerus cannot establish a physical location for an Aerus Business within the franchisee's Protected Area. Furthermore, Aerus retains the right to introduce new products and services and require franchisees to market and sell them, potentially impacting the competitive landscape.
Moreover, Aerus, its affiliates, licensees, and permitees may sell products through alternative channels such as television, catalogs, direct mail, floor care retailers, mass merchandise retailers, commercial sales, the internet, customer service call centers, and distributors. These sales can occur within the franchisee's Area of Responsibility, adding another layer of competition. Aerus will not compensate franchisees for orders solicited or accepted by them within the Area of Responsibility through these alternative channels. Therefore, prospective franchisees should be aware that their Area of Responsibility is not an exclusive territory and that they will likely face competition from multiple sources.