Can an Aerus Outlet Licensee be granted greater rights than the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Standard Program, and only upon our prior written consent, you may be permitted to engage Outlet Licensee to establish, on a non-exclusive basis, Licensed Outlets within those parts of your Area of Responsibility that do not include any part of another franchisee's Protected Area The forms (and terms) used to engage Outlet Licensees must be acceptable to us and may not grant greater rights and must include at least the same restrictions and limitations as the Franchise Agreement. Licensed Outlets must be subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations, except that (i) repair, maintenance and warranty service may be provided by or at an affiliated Approved Location rather than on-site and, (ii) provided that, so long as we receive prompt notice of the establishment and location of a Licensed Outlet, we will not require prior approval of the site or lease for any Licensed Outlet. Outlet Licensees will be solely and exclusively the responsibility of you for all purposes, including without limitation, all training and support. We will have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, we will be a beneficiary of any of your rights under all agreements existing between you and any Outlet Licensees and may enforce such rights.
Franchisees under the Associate Program are not permitted to open additional locations, Satellites or Licensed Outlets. References and descriptions of Outlet Licensees and Licensed Outlets in this Disclosure Document are not applicable to the Associate Program.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, an Outlet Licensee cannot be granted greater rights than those outlined in the Franchise Agreement. Specifically, under the Standard Program, a franchisee may be permitted to engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, provided they obtain Aerus's prior written consent. These Licensed Outlets must operate on a non-exclusive basis and cannot be located within another franchisee's Protected Area.
The terms used to engage Outlet Licensees must be acceptable to Aerus and must include at least the same restrictions and limitations as the Franchise Agreement. This means that the agreement between the franchisee and the Outlet Licensee cannot grant the Outlet Licensee more rights or fewer restrictions than the franchisee has under their own agreement with Aerus. The Licensed Outlets are subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations.
There are a couple of exceptions: repair, maintenance, and warranty service may be provided by or at an affiliated Approved Location rather than on-site, and Aerus will not require prior approval of the site or lease for any Licensed Outlet, provided they receive prompt notice of the establishment and location of the outlet. The franchisee is solely responsible for the Outlet Licensee, including all training and support. Aerus has no legal obligation to the Outlet Licensee but will be a beneficiary of the franchisee's rights under the agreements with the Outlet Licensees and may enforce such rights. Franchisees operating under the Associate Program are not permitted to open additional locations, Satellites, or Licensed Outlets.