What happens to licenses and agreements made by an Aerus franchisee with Outlet Licensees and Sales Representatives upon termination of the franchise agreement?

According to Aerus's 2025 Franchise Disclosure Document, the termination of the franchise agreement automatically terminates any and all licenses and agreements that the franchisee has made with Outlet Licensees and Sales Representatives. This means that upon termination of the agreement between Aerus and the franchisee, all secondary agreements the franchisee has established with their sales force are also immediately nullified.

This provision protects Aerus by ensuring that terminated franchisees cannot continue to operate using the Aerus brand or system through their existing networks of representatives and licensees. It also simplifies the process of disentangling the franchisee from the Aerus system, as all related agreements are terminated simultaneously.

Furthermore, the franchisee is obligated to send written notice to all Outlet Licensees and Sales Representatives, informing them that their licenses or agreements have been terminated and that they must also take the necessary steps to comply with the termination, as required of the franchisee. This ensures that all parties are aware of the termination and that everyone takes appropriate action to cease operations related to the Aerus franchise.