If an Aerus franchisee violates the advertising or promotion provisions, is there a cure period?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
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, while it does not explicitly state a cure period for advertising or promotion violations, it does mention a system of enforcement that may result in deferral of termination under certain circumstances. This system, at Aerus's sole discretion, could include fines or penalties for certain breaches.
Specifically, Aerus may implement a system of enforcement for the terms of the agreement, which could include announced or unannounced compliance audits and "secret shopper" practices. This system may lead to a deferral of termination under certain conditions. The potential enforcement actions include fines or penalties for specific violations or breaches. Aerus also has the option to impose a minimum or fixed royalty amount or set a Minimum Sales Requirement.
It's important to note that the implementation, revocation, or modification of this enforcement system is at the sole discretion of Aerus, with reasonable notice provided to the franchisee. This means that while there might be a chance to correct advertising or promotion violations and avoid termination, it is not guaranteed and depends entirely on Aerus's decision. A prospective franchisee should seek clarification from Aerus regarding the specific circumstances under which violations can be cured and the criteria used to determine whether termination will be deferred.
In the absence of a clearly defined cure period, franchisees should prioritize strict adherence to Aerus's advertising and promotion guidelines to minimize the risk of penalties or termination. This includes submitting all advertising materials for approval and ensuring compliance with the standards outlined in the manuals.