What happens if an Aerus franchisee does not comply with the minimum sales requirement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting or restricting Company's right to terminate this Agreement at any time as provided herein, Company may implement a system of enforcement of the terms and provisions of this Agreement (including without limitation announced or unannounced compliance audits and "secret shopper" practices), which system may result in deferral of termination under certain circumstances and include any one or more of the following: (1) the imposition of fines or penalties associated with certain violations or breaches; (2) in the case of a royalty, impose a minimum or fixed amount to be paid in place of or in addition to the amount provided in Schedule 3 attached hereto; or (3) in the case of sales of the Products, impose the Minimum Sales Requirement set forth in Schedule 4 attached hereto.
The existence, substance and process of any such system would be the sole and exclusive discretion of Company and may be implemented, revoked or modified (upon reasonable notice to Franchisee) at any time and from time to time.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus may implement a system to enforce the terms of the agreement, including the minimum sales requirements. This enforcement system could involve several actions. Aerus might impose fines or penalties for violations or breaches of the agreement.
Additionally, Aerus has the option to impose a minimum or fixed royalty amount that the franchisee must pay, which could be in place of or in addition to the standard royalty outlined in Schedule 3. Aerus can also enforce the minimum sales requirements detailed in Schedule 4.
The FDD states that the specifics of this enforcement system, including its existence, details, and processes, are at the sole discretion of Aerus. Aerus can implement, change, or revoke this system at any time, provided they give reasonable notice to the franchisee. This means that Aerus franchisees need to be aware that the consequences for not meeting sales requirements can vary and are subject to change based on Aerus's decisions.