If the Aerus Franchise Agreement is terminated by Aerus, what is Aerus required to do?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, if the Franchise Agreement is terminated by Aerus, Aerus is not required to take any specific actions. However, the franchisee has several obligations upon termination. The franchisee must 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. The franchisee must also 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. The franchisee must also 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.
Additionally, the franchisee is required to 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 required of Franchisee under this Section. The franchisee must cooperate with Aerus in perfecting an assignment of all telephone numbers used at the Approved Location in connection with the sales of Products or otherwise known or identified as numbers associated with Aerus, the Products or the Marks to and into the name of Aerus or its nominee, taking all action necessary to effect the intent of the foregoing. The franchisee must also 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.
Furthermore, the franchisee must immediately return to Aerus and Aerus's Affiliates all items of personal property that are then owned by Aerus or Aerus's Affiliates, including Consigned Products and any equipment and supplies to which Aerus or Aerus's Affiliates hold title. The franchisee must promptly pay all sums owing to Aerus, Aerus's Affiliates, lessors and other trade creditors. The franchisee must immediately deliver to Aerus all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative), and all copies thereof. Finally, the franchisee must comply with the non-competition covenants and the restrictions on Confidential Information contained within the agreement.