Who is responsible for Outlet Licensees for Aerus franchises?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Standard Program, and only upon our prior written consent, you may be permitted to engage Outlet Licensee to establish, on a non-exclusive basis, Licensed Outlets within those parts of your Area of Responsibility that do not include any part of another franchisee's Protected Area The forms (and terms) used to engage Outlet Licensees must be acceptable to us and may not grant greater rights and must include at least the same restrictions and limitations as the Franchise Agreement. Licensed Outlets must be subject to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations, except that (i) repair, maintenance and warranty service may be provided by or at an affiliated Approved Location rather than on-site and, (ii) provided that, so long as we receive prompt notice of the establishment and location of a Licensed Outlet, we will not require prior approval of the site or lease for any Licensed Outlet. Outlet Licensees will be solely and exclusively the responsibility of you for all purposes, including without limitation, all training and support. We will have no legal obligation whatsoever to or for the benefit of any Outlet Licensees; however, we will be a beneficiary of any of your rights under all agreements existing between you and any Outlet Licensees and may enforce such rights.
Franchisees under the Associate Program are not permitted to open additional locations, Satellites or Licensed Outlets. References and descriptions of Outlet Licensees and Licensed Outlets in this Disclosure Document are not applicable to the Associate Program.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if you operate under the Standard Program and receive prior written consent from Aerus, you may engage Outlet Licensees to establish Licensed Outlets within your Area of Responsibility, excluding any part of another franchisee's Protected Area. The agreement forms used to engage Outlet Licensees must be acceptable to Aerus and include restrictions and limitations at least as stringent as those in the Franchise Agreement. These Licensed Outlets must adhere to all provisions of the Franchise Agreement and Manuals concerning Approved Locations. However, repair, maintenance, and warranty services can be provided by or at an affiliated Approved Location rather than on-site. Additionally, Aerus does not require prior approval of the site or lease for any Licensed Outlet, provided they receive prompt notice of the establishment and location of the outlet.
As an Aerus franchisee, you will be solely responsible for your Outlet Licensees for all purposes, including their training and support. Aerus will have no legal obligation to or for the benefit of any Outlet Licensees. However, Aerus will be a beneficiary of any of your rights under all agreements between you and your Outlet Licensees and may enforce such rights.
It is important to note that franchisees operating under the Associate Program are not permitted to open additional locations, Satellites, or Licensed Outlets. Therefore, the provisions regarding Outlet Licensees and Licensed Outlets do not apply to the Associate Program. This distinction is crucial for prospective franchisees to understand when choosing between the Standard and Associate Programs, as it affects their ability to expand their business through licensed outlets.