Does Aerus prohibit certain abusive 'referral sales schemes'?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchised Business must comply with the Americans with Disability Act, and all local zoning laws, land use laws and regulations. You must comply with the Truth in Lending Law and other laws applicable to the offer of financing. Further, with respect to your sale of products through direct in-home demonstrations, you must comply with a number of regulations particular to such activity including: the Federal Trade Commission Rule granting the purchaser in any such sale an unfettered right to cancel the transaction within three business days; the Federal Communications Commission regulation requiring you to maintain a list of consumers who have asked you directly to not call them again; and some state and federal statutes that permit residential telephone users
to have their names placed on a state or federally managed "do not call" list to which telephone marketers must subscribe and adhere. You may also have to comply with local ordinances that require the in-home salespersons to hold a solicitors or direct sellers permit. Other state laws prohibit certain abusive "referral sales schemes". State or local laws may also require the bonding of door-to-door salespeople. You must operate the Franchised Business according to all laws that apply to businesses generally, including federal, state, and local employment and health and safety laws and regulations. You must comply with all present and future laws and regulations that apply to the collection, dissemination, retention and use of personal information.
It is your responsibility to consult with your legal advisor regarding any and all laws which may apply to your business.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–15)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees must comply with various laws and regulations related to direct in-home sales. This includes adhering to the Federal Trade Commission rule that grants purchasers the right to cancel a transaction within three business days, as well as Federal Communications Commission regulations regarding do-not-call lists. Additionally, franchisees must follow state and federal statutes related to do-not-call lists and may need to comply with local ordinances requiring in-home salespersons to hold permits.
Specifically, the FDD states that "Other state laws prohibit certain abusive 'referral sales schemes'." This means that Aerus franchisees must be aware of and adhere to state laws that prohibit abusive referral sales schemes. These laws vary by state, so it is the franchisee's responsibility to understand and comply with the specific regulations in their area.
It is important for prospective Aerus franchisees to consult with a legal advisor to ensure they understand all the laws applicable to their business, including those related to direct sales and referral schemes. Compliance with these laws is essential for the operation of the franchise.