What is the relationship between Aerus and the franchisee defined as in the agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ion to, the granting of the rights under the Franchise Agreement, and that Company would not have granted such rights without the execution of the Guaranty by each of the undersigned.
| FRANCHISEE'S PRINCIPALS: | ||
|---|---|---|
| Name | Name | |
| Name | Name |
[NOTE: ALL OF THE FRANCHISEE'S PRINCIPALS ARE TO EXECUTE THE GUARANTY AT ATTACHMENT A.]
ADDENDUM A
DEFINED TERMS AND PHRASES
- A. "Administration and Technical Support Fee" means the fee paid by Franchisee to Company, in an amount specified in Schedule 3 attached hereto, for administration and technical support services Company shall provide to Franchisee hereunder.
- B. "Aerus Business" means a business which possesses each of the following four (4) characteristics: (i) it is identified by the Proprietary Marks, (ii) it is exclusively engaged in the offer and sale of Proprietary Products to Approved Customers, (iii) it operates from one or more Approved Locations that serves as a retail location, service center and sales force instruction and training center, and (iv) it operates in accordance with the Proprietary System.
- C. "Affiliate" means any entity or person that is, directly or indirectly, controlled by, controlling or under common control with a referenced person or entity.
- D. "Agreement" has the meaning assigned in the Preamble.
- E. "Application Fee" means the fee, in an amount specified in Schedule 3 attached hereto, paid to Company by any person or entity applying to become an Aerus franchisee.
- F. "Approved Customer" means either (a) a non-commercial, residential buyer of Products, or (b) a commercial buyer of Product who is not designated as a "national account" in the Manuals and who is not engaged, and not anticipated to be engaged, in the sale of any cleaning, purification, health improvement or other consumer products or services, who, in either case, is purchasing the Products for such customer's use or consumption and not for re-sale.
- G. "Approved Name" has the meaning assigned in Section 1.B.
- H. "Area of Responsibility" has the meaning assigned in Section 1.A.
- I. "Approved Location" means the approved location or locations of the Franchised Business identified on Schedule 1, attached hereto, or such other location as Company may, at its option, subsequently approve and permit in writing.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the relationship between Aerus and its franchisees is defined by the franchise agreement, which grants the franchisee the right to operate an Aerus Business under specific conditions. Aerus retains all rights not expressly granted to the franchisee and may introduce new products or services to be offered by the franchisee, potentially requiring additional agreements and royalty payments. The franchisee is obligated to open the Franchised Business at an Approved Location by the Opening Date and must make any modifications or improvements to the premises at their own expense as directed by Aerus.
The franchisee is required to provide service to Approved Customers, maintain a service and repair center, and fulfill all promises made to customers. They must also develop a qualified sales team, train sales representatives, and actively use customer data provided by Aerus. Compliance with the Aerus manuals, policies, and all applicable laws is mandatory. If the franchisee is a business entity, its activities must be confined exclusively to operating an Aerus Business, unless Aerus provides written consent otherwise.
Aerus also has financing arrangements where Aerus Franchising, LLC ("Lender") may make loans and advances and provide other financial accommodations to Borrower as set forth in that certain Secured Promissory Note. The franchisee must operate the Franchised Business to achieve optimum sales, and the franchise agreement remains in full effect except as modified by any addendums. The initial and renewal terms of the agreement are specified in Schedule 1. The agreement can be terminated if the franchisee materially breaches the agreement.