What are Aerus franchisees who operate under the Standard Program required to prohibit from their Outlet Licensees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Standard Program, and only upon our prior written consent, you may be permitted to engage Outlet Licensee to establish, on a non-exclusive basis, Licensed Outlets within those parts of your Area of Responsibility that do not include any part of another franchisee's Protected Area The forms (and terms) used to engage Outlet Licensees must be acceptable to us and may not grant greater rights and must include at least the same restrictions and limitations as the Franchise Agreement. Licensed Outlets must be subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations, except that (i) repair, maintenance and warranty service may be provided by or at an affiliated Approved Location rather than on-site and, (ii) provided that, so long as we receive prompt notice of the establishment and location of a Licensed Outlet, we will not require prior approval of the site or lease for any Licensed Outlet. Outlet Licensees will be solely and exclusively the responsibility of you for all purposes, including without limitation, all training and support. We will have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, we will be a beneficiary of any of your rights under all agreements existing between you and any Outlet Licensees and may enforce such rights.
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 operating under the Standard Program must ensure their Outlet Licensees do not operate outside specific guidelines. Specifically, Outlet Licensees cannot be granted greater rights than those outlined in the Franchise Agreement itself and must adhere to at least the same restrictions and limitations.
Licensed Outlets are bound by all provisions of the Franchise Agreement and the Manuals concerning Approved Locations. However, there are a couple of exceptions: repair, maintenance, and warranty service can be provided by or at an affiliated Approved Location rather than on-site, and Aerus does not require prior approval of the site or lease for any Licensed Outlet, provided they receive prompt notice of the establishment and location of the outlet.
It's important to note that the franchisee retains sole responsibility for their Outlet Licensees, covering all aspects including training and support. Aerus has no legal obligation to these Outlet Licensees but does retain beneficiary rights under any agreements between the franchisee and their licensees, allowing Aerus to enforce those rights. This structure allows Aerus to maintain brand standards and consistency across all locations while delegating the direct management of Outlet Licensees to the franchisee.