If an Aerus franchisee develops a new concept related to the franchised business, what is the franchisee required to do?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The right granted under this Agreement is only for the operation of the Franchised Business in accordance with this Agreement.
Franchisee is granted no rights of any kind in and to any other business or system that may now or hereafter be owned, operated or licensed by Company or any of its Affiliates.
Company and Company's Affiliates retain all rights not expressly granted herein.
Company reserves the right to provide new products and services under the System, and to require or permit new products and services to be provided, marketed, promoted, distributed or sold hereunder by Franchisee through the Franchised Business, and may, in connection therewith, without limitation (1) require Franchisee to execute an additional or supplemental agreement and (2) require the payment of a royalty.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the agreement grants franchisees the right to operate their franchised business according to the agreement. Aerus franchisees do not have rights to any other business or system that Aerus or its affiliates may own, operate, or license. Aerus and its affiliates retain all rights not expressly granted in the agreement.
Aerus reserves the right to introduce new products and services under the Aerus system. Aerus can require or permit franchisees to provide, market, promote, distribute, or sell these new products and services through their franchised business.
In connection with introducing new products or services, Aerus may require the franchisee to execute an additional or supplemental agreement and require the franchisee to pay a royalty. This means that if a franchisee develops a new concept related to the Aerus business, Aerus retains the right to incorporate it into the system and potentially require the franchisee to enter into a new agreement and pay royalties on it.