Must Aerus franchisees get approval for all forms of sales contracts before offering them to customers?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
We will designate the price for Consigned Products offered for sale at your Aerus Business, and must approve all forms of sales contracts, warranties, and service contracts before they are offered to customers. You may not modify or otherwise alter approved forms of sales contracts, warranties, or service contracts without our prior written consent. All rebates and discounts offered in connection with Consigned Products must be offered according to our guidelines, as set forth in the Manuals or otherwise in writing.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 29–33)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus franchisees must get approval for all forms of sales contracts, warranties, and service contracts before offering them to customers. Franchisees may not modify or alter approved forms of sales contracts, warranties, or service contracts without Aerus's prior written consent. Additionally, all rebates and discounts offered in connection with Consigned Products must be offered according to Aerus's guidelines, as set forth in the Manuals or otherwise in writing.
This requirement ensures that all sales contracts, warranties, and service contracts used by Aerus franchisees are consistent with the brand's standards and legal requirements. By requiring approval, Aerus maintains control over the terms and conditions offered to customers, which helps to protect the brand's reputation and minimize potential legal liabilities. This also ensures that all franchisees offer similar terms, creating a uniform experience for customers.
For a prospective Aerus franchisee, this means they will need to submit all sales contracts, warranties, and service contracts to Aerus for approval before using them. This process may add an extra step to the sales process, but it also provides franchisees with the assurance that their contracts are compliant and aligned with Aerus's standards. Franchisees should factor in the time required for approval when planning sales promotions and customer interactions.
This level of control over sales contracts is relatively common in franchising, as franchisors seek to maintain consistency and protect their brand. However, franchisees should carefully review the approval process and timelines to ensure they can operate efficiently within these guidelines. Understanding the specific requirements for sales contracts, warranties, and service contracts is crucial for a smooth and compliant operation as an Aerus franchisee.