What is required for each Licensed Outlet to constitute an Approved Location under the Aerus agreement?

According to Aerus's 2025 Franchise Disclosure Document, a Licensed Outlet becomes an Approved Location once Aerus receives prompt notice of the establishment and location of the Licensed Outlet and the franchise agreement is amended accordingly. Aerus does not require prior approval of the site or lease for any Licensed Outlet, provided they receive prompt notice. Once these conditions are met, the franchisee assumes all rights and obligations associated with any Approved Location as outlined in the franchise agreement and the manuals.

This means that while franchisees have some flexibility in choosing locations for Licensed Outlets, they must keep Aerus informed. This allows Aerus to maintain oversight of its brand and ensure that all locations meet the company's standards. The franchisee is responsible for all aspects of the Outlet Licensees, including training and support.

Aerus retains the right to disallow further establishment of Licensed Outlets or impose policies related to their establishment and operation. Aerus also has no legal obligation to the Outlet Licensees but is a third-party beneficiary of agreements between the franchisee and its Outlet Licensees, allowing Aerus to enforce those agreements. Aerus may also require a direct contractual relationship with any Outlet Licensee at any time, at their discretion.

This structure gives Aerus significant control over the expansion and operation of Licensed Outlets, even though franchisees manage them directly. Prospective franchisees should carefully consider these conditions and ensure they understand their responsibilities and Aerus's rights regarding Licensed Outlets.