If the Aerus franchisee is a business entity, what must the franchisee's charter documents provide regarding the scope of its activities?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
B. If a business entity:
- (1) Franchisee is duly organized and validly existing under the law of the jurisdiction of its formation and is duly qualified and authorized to do business in each jurisdiction in which the Franchised Business will operate;
- (2) Franchisee's charter documents currently provide and will at all future times provide that Franchisee's activities shall be confined exclusively to the ownership and operation of an Aerus Business, unless Company otherwise consents in writing;
- (3) Franchisee has provided to Company for review certified copies of its articles of organization or other charter documents, any amendments thereto, resolutions of its Board of Directors or Board of Managers, or consent of its limited partners, authorizing and consenting to entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity of the entity, and any other documents as Company may reasonably require prior to the execution of this Agreement;
- (4) The individual executing this Agreement is duly authorized to so execute, has appropriate authority to bind Franchisee as provided hereunder, and is an active, full-time participant in the daily operations of the Franchised Business; and
- (5) Franchisee's execution of this Agreement, and entry into the business arrangement contemplated hereby, do not violate any prior existing obligation, any law or any of the contractual or business relationship of Franchisee or any of Franchisee's principals.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, if a franchisee is a business entity, its charter documents must stipulate that its activities are exclusively limited to the ownership and operation of an Aerus Business. This restriction remains in effect at all times unless Aerus provides written consent to allow other activities.
This requirement ensures that the franchisee's focus remains solely on the Aerus business, preventing potential conflicts of interest or diversion of resources to other ventures. Aerus aims to maintain brand consistency and operational standards by ensuring franchisees are dedicated to their Aerus business.
Prospective franchisees who operate as business entities should carefully review their existing charter documents to ensure compliance with this requirement. If the documents do not meet this standard, they will need to be amended before finalizing the franchise agreement. Franchisees should also consider the long-term implications of this restriction, as it may limit their ability to pursue other business opportunities without Aerus's approval.