What is the purpose of including a California Addendum in the Aerus Disclosure Document?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement requires application of the laws of the State of Texas. This provision may not be enforceable under California law.
The maximum interest rate in California is 10% annually. We do not offer financing to California franchises.
Neither the Franchisor nor any person listed in Item 2 of this offering circular is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
OUR WEBSITES (www.aerusonline.com and www.beyondbyaerus.com) HAVE NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the inclusion of a California Addendum addresses specific legal considerations for franchisees operating in California. The addendum clarifies that the franchise agreement, which generally requires application of Texas law, may not be enforceable under California law. This is particularly important because California has its own franchise laws designed to protect franchisees.
Additionally, the addendum specifies that the maximum interest rate in California is 10% annually, and Aerus does not offer financing to California franchisees. This informs potential franchisees in California about financing limitations and interest rate regulations within the state.
Furthermore, the addendum emphasizes that no statement or agreement signed by a franchisee can waive claims of fraud in the inducement or disclaim reliance on statements made by Aerus. This provision reinforces franchisee rights under California law, ensuring that franchisees cannot inadvertently forfeit legal protections through standard contractual language. The Aerus websites have not been reviewed or approved by the California Department.