What happens to the Aerus franchise agreement once notice is received by the company regarding a Licensed Outlet?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination of this Agreement shall automatically terminate any and all licenses and agreements made by Franchisee with Outlet Licensees and Sales Representatives.
- E.
Upon expiration or termination of this Agreement, Franchisee and Franchisee's principals shall:
(2) Send written notice to all Outlet Licensees and Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Outlet Licensees and Sales Representatives must also take all other steps herein required of Franchisee under this Section.
(1) Immediately cease operation of the Franchised Business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose; promptly remove all signs, markings, or other writings and, immediately discontinue all advertising or publicity, that tend to indicate that Franchisee is a franchisee of Company or seller of Products; and immediately discontinue all advertising or publicity and take all actions necessary to comply with the foregoing, including instructing all publishers of any telephone directory or listing not to renew, repeat or insert any listing or advertisement using the word "Aerus", "Lux" or "Electrolux" or any other term or identifier associating Franchisee with Company.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the termination of the Franchise Agreement automatically terminates all licenses and agreements that the franchisee has made with Outlet Licensees and Sales Representatives.
Upon the expiration or termination of the Aerus Franchise Agreement, the franchisee must send written notice to all Outlet Licensees and Sales Representatives with whom the franchisee has been dealing, informing them that any license or agreement made with them is terminated. The Outlet Licensees and Sales Representatives must also take all other steps required of the franchisee under this section of the agreement.
Additionally, the franchisee must immediately cease operation of the franchised business and discontinue any use of the Aerus marks, software, administration systems, or customer data. The franchisee must also remove all signs and discontinue all advertising that indicates they are an Aerus franchisee or seller of Aerus products. This includes instructing publishers of telephone directories not to renew any listings using the Aerus name or any other term associating the franchisee with Aerus.