Which item in the Aerus Disclosure Document covers the franchisee's obligations for territorial development and minimum sales requirements?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure to Meet Minimum Sales Requirements. If you fail to meet the Minimum Sales Requirement, we may terminate the Franchise Agreement. The Minimum Sales Requirements should not be construed as a representation of possible earnings. We make no representation that you will achieve the Minimum Sales Requirements.
Except as provided in the Franchise Agreement, we will not establish, or permit or authorize any person or entity other than you to establish a physical location for the operation of an Aerus Business within a one mile radius of your Approved Location (the "Protected Area"). There are no circumstances that would permit us to modify your Protected Area.
You are generally required to sell all Products within the Area or Responsibility, however, 10% of your Gross Sales in any calendar quarter may be attributable to sales made to persons or entities who reside outside of the Area of Responsibility.
You may face competition from other franchisees or franchisee-owned outlets within or outside of your Area of Responsibility and/or Protected Area or from other channels of distribution or competitive brands we control. You may face competition from other franchisees or franchisee-owned outlets having physical locations outside of your Protected Area or from other channels of distribution or competitive brands we control.
Source: Item 9 — Franchisee's Obligations (FDD pages 33–34)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Item 23 defines "Minimum Sales Requirements" as the requirements and minimum sales quantities described on Schedule 4. Item 12 discusses the Area of Responsibility and states that franchisees are generally required to sell all products within their assigned Area of Responsibility, although up to 10% of gross sales in any calendar quarter may come from sales outside this area. Item 12 also mentions that failure to meet the Minimum Sales Requirement may result in the termination of the Franchise Agreement by Aerus.
Item 12 outlines the franchisee's Protected Area, specifying that Aerus will not establish or authorize another entity to operate an Aerus Business within a one-mile radius of the franchisee's Approved Location, except as provided in the Franchise Agreement. However, the document also notes that franchisees may face competition from other franchisees, franchisee-owned outlets, other distribution channels, or competitive brands controlled by Aerus, both within and outside their Area of Responsibility and Protected Area.
Item 16 states that franchisees must use their best efforts to develop a sales organization to increase sales of products to approved customers within their Area of Responsibility. This includes ethical advertising, marketing, promotion, distribution, and sales through in-home and in-person demonstrations, following the guidelines in the Manuals. Franchisees are also obligated to provide prompt and workmanlike care and service to customers who purchased products directly from them or through their sales representatives, as well as to other owners of Aerus products within their Area of Responsibility.