What happens if an Aerus franchisee violates the license granted with respect to the Marks, the Software and Administration Systems, or the Customer Data?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
m 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.
E. Upon expiration or termination of this Agreement, Franchisee and Franchisee's principals shall:
(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.
(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.
(3) Cooperate with Company in perfecting an assignment of all telephone numbers used at an Approved Location in connection with the sales of Products hereunder or otherwise known or identified as numbers associated with Company, the Products or the Marks to and into the name of Company or its nominee, taking all action necessary to effect the intent of the foregoing.
(4) Immediately cause the cancellation or termination of any assumed name filings for the Approved Name or otherwise including the name "Aerus", "Lux" or "Electrolux" or any of the Marks.
(5) Immediately return to Company and Company's Affiliates all items of personal property that are then owned by Company or Company's Affiliates, including Consigned Products and any equipment and supplies to which Company or Company's Affiliates hold title.
(6) Promptly pay all sums owing to Company, Company's Affiliates, lessors and other trade creditors.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a franchisee violates the terms of the franchise agreement, Aerus retains several options. Aerus may implement a system to enforce the terms of the agreement, which could include compliance audits and "secret shopper" practices. This system, at Aerus's discretion, may involve penalties such as fines for certain violations, imposing a minimum or fixed royalty amount, or setting a minimum sales requirement. Aerus can implement, revoke, or modify this enforcement system with reasonable notice to the franchisee.
Specifically, upon the expiration or termination of the franchise agreement, the franchisee must immediately cease using the Marks, Software and Administration Systems, or Customer Data. The franchisee must also remove any signs or advertising indicating they are an Aerus franchisee and instruct publishers to discontinue any listings associating them with Aerus.
Aerus's failure to enforce termination rights in one instance does not prevent them from properly terminating the agreement later. Termination of the agreement automatically ends any licenses or agreements the franchisee has with sales representatives. These measures ensure Aerus maintains control over its brand and proprietary information, even in cases of franchisee non-compliance or termination.