If an Aerus franchisee fails to satisfy any policy concerning the Marks, can Aerus terminate the agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting or restricting Company's right to terminate this Agreement at any time as provided herein, Company may implement a system of enforcement of the terms and provisions of this Agreement (including without limitation announced or unannounced compliance audits and "secret shopper" practices), which system may result in deferral of termination under certain circumstances and include any one or more of the following: (1) the imposition of fines or penalties associated with certain violations or breaches; (2) in the case of a royalty, impose a minimum or fixed amount to be paid in place of or in addition to the amount provided in Schedule 3 attached hereto; or (3) in the case of sales of the Products, impose the Minimum 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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus retains the right to terminate the franchise agreement if a franchisee violates the terms and conditions of the agreement. While the document does not explicitly state that failure to satisfy policies concerning the Marks will result in termination, it does state that Aerus may implement a system of enforcement for breaches of the agreement's terms. This system can include penalties or fines. Aerus also retains the right to terminate the agreement at any time as provided within the agreement.
Aerus may implement a system of enforcement for breaches of the agreement's terms. This system can include penalties or fines. Aerus also retains the right to terminate the agreement at any time as provided within the agreement.
It is important to note that the enforcement system's specifics are at Aerus's discretion and can be modified. The agreement also states that upon termination, the franchisee must immediately cease using the Marks. Prospective franchisees should carefully review the franchise agreement and related documents to understand the specific circumstances under which Aerus can terminate the agreement and what constitutes a violation of the policies concerning the Marks.