If any of the Sales Representatives of an Aerus franchisee engages in any conduct that reflects materially and unfavorably upon the operation and reputation of Aerus, can Aerus terminate the agreement?

Based on the 2025 Aerus Franchise Disclosure Document, the agreement can be terminated if certain events occur, which are deemed material breaches or defaults of the agreement. However, the document does not explicitly state that Aerus can terminate the agreement if a sales representative engages in conduct that reflects materially and unfavorably upon the operation and reputation of Aerus.

However, the FDD does state that upon termination of the agreement, the franchisee must send written notice to all Sales Representatives with whom the Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Sales Representatives must also take all other steps herein required of Franchisee under this Section.

Because the FDD does not directly address the question of whether Aerus can terminate the agreement based on the conduct of a sales representative, it is important for a prospective franchisee to seek clarification from Aerus regarding the specific circumstances under which the agreement can be terminated due to the actions of sales representatives. Understanding these conditions is crucial for assessing the risks and responsibilities associated with the franchise.