Can Aerus require a direct contractual relationship with any Outlet Licensee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Outlet Licensees shall be solely and exclusively the responsibility of Franchisee for all purposes, including without limitation, all training and support.
Company shall have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, Company shall be a third-party beneficiary of any of Franchisee's rights under all agreements existing between Franchisee and any Outlet Licensees and may enforce such rights in its sole discretion.
In its sole discretion at any time, Company may require a direct contractual relationship with any Outlet Licensee.
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 mandate a direct contractual relationship with any Outlet Licensee at any time, at its sole discretion. This means that while a franchisee may initially manage the relationship with their Outlet Licensees, Aerus can step in and establish a direct agreement with these licensees.
This provision gives Aerus significant control over the network of outlets operating under its brand. It allows Aerus to ensure compliance with its standards and protect its brand reputation by having direct agreements with those operating Licensed Outlets. For a franchisee, this means that their relationship with their Outlet Licensees could be subject to change if Aerus decides to exercise this right.
It is important for prospective Aerus franchisees to understand that while they are responsible for the training and support of their Outlet Licensees, Aerus retains the power to directly contract with these licensees. This could impact the franchisee's revenue and relationship with their licensees. Franchisees should seek clarification from Aerus regarding the circumstances under which they might enforce this right and what the implications would be for the franchisee's business.