What recourse do Aerus franchisees have if they believe the company is violating this policy?
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 18 — Public Figures (FDD page 60)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus may implement a system to enforce the franchise agreement's terms. This system can include announced or unannounced compliance audits and "secret shopper" practices. If violations or breaches are found, Aerus may defer termination under certain circumstances and impose fines or penalties. They might also set a minimum or fixed royalty amount or impose a Minimum Sales Requirement.
This enforcement system is at Aerus's sole discretion, meaning they can implement, revoke, or modify it with reasonable notice to the franchisee. The FDD does not specify a process for franchisees to formally challenge Aerus's policy decisions or actions, nor does it detail specific procedures for dispute resolution outside of the enforcement mechanisms Aerus establishes.
Given this information, a prospective Aerus franchisee should consider the potential for unilateral changes to the enforcement system and the lack of a clearly defined process for franchisees to challenge Aerus's decisions. It would be prudent to discuss with Aerus the specific conditions under which fines or penalties are imposed, how the Minimum Sales Requirement is calculated, and what avenues are available for franchisees to voice concerns or seek resolution if they believe Aerus is not adhering to the franchise agreement.