Are Aerus Licensed Outlets subject to the same provisions as Approved Locations?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensed Outlets shall be subject to all provisions of this Agreement and the Manuals concerning Approved Locations, except that repair, maintenance and warranty service may be provided by or at an affiliated approved location rather than on-site and, provided that, so long as Company receives prompt notice of the establishment and location of a Licensed Outlet, Company shall not require prior approval of the site or lease for any Licensed Outlet.
Once notice is received by Company and this Agreement is amended accordingly, each Licensed Outlet shall constitute an Approved Location under this Agreement, for which Franchisee shall have all of the rights and obligations associated with any Approved Location under this Agreement and the Manuals.
Outlet Licensees shall be solely and exclusively the responsibility of Franchisee for all purposes, including without limitation, all training and support.
Company shall have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, Company shall be a third-party beneficiary of any of Franchisee's rights under all agreements existing between Franchisee and any Outlet Licensees and may enforce such rights in its sole discretion.
In its sole discretion at any time, Company may require a direct contractual relationship with any Outlet Licensee.
Company reserves the right at any time to disallow the further establishment of Licensed Outlets or to impose any such policies, procedures and practices directed to the establishment and operation of Licensed Outlets as Company may deem appropriate in its sole discretion.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Licensed Outlets are generally subject to the same provisions as Approved Locations, with a few exceptions. Specifically, repair, maintenance, and warranty service for Licensed Outlets may be provided by or at an affiliated approved location rather than on-site. Additionally, Aerus does not require prior approval of the site or lease for any Licensed Outlet, provided the company receives prompt notice of the establishment and location of the Licensed Outlet. Once Aerus receives notice and the franchise agreement is amended, each Licensed Outlet will be considered an Approved Location, with the franchisee having all associated rights and obligations.
This means that while franchisees can establish Licensed Outlets with slightly less initial oversight regarding site approval, they must still adhere to most of the operational guidelines and standards set for Approved Locations. This includes following the manuals, using the marks properly, and fulfilling commitments to customers. The franchisee is responsible for the training and support of their Outlet Licensees.
Aerus retains significant control over Licensed Outlets. The company can disallow the establishment of further Licensed Outlets or impose policies and procedures related to their establishment and operation. Aerus also has no legal obligation to Outlet Licensees but is a third-party beneficiary of agreements between the franchisee and the Outlet Licensees, allowing Aerus to enforce those agreements. Aerus may also require a direct contractual relationship with any Outlet Licensee at any time, giving them further control and oversight.