What are some potential enforcement actions Aerus may take, besides termination, for violations of the franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Aerus has the right to implement a system of enforcement for violations of the franchise agreement's terms and provisions. This system may include announced or unannounced compliance audits and "secret shopper" practices.
Instead of immediate termination, Aerus may choose to defer termination and implement alternative enforcement actions. These actions can include the imposition of fines or penalties for specific violations or breaches of the agreement.
Additionally, for royalty-related violations, Aerus may impose a minimum or fixed royalty amount to be paid, either in place of or in addition to the standard royalty amount detailed in Schedule 3. For violations related to product sales, Aerus may enforce the Minimum Sales Requirement outlined in Schedule 4. The implementation, revocation, or modification of this enforcement system is at Aerus's sole discretion, with reasonable notice provided to the franchisee.