What restrictions apply to the forms and terms used to engage Aerus Outlet Licensees?
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, franchisees operating under the Standard Program have the option to engage Outlet Licensees to establish Licensed Outlets within their Area of Responsibility, provided it doesn't encroach upon another franchisee's Protected Area. However, this is only allowed with Aerus's prior written consent.
The forms and terms used to engage these Outlet Licensees are subject to specific restrictions. Aerus must find the forms and terms acceptable, and they cannot grant greater rights than those outlined in the Franchise Agreement. Furthermore, these agreements must include at least the same restrictions and limitations as the Franchise Agreement itself. This ensures that the Outlet Licensees operate under similar constraints as the franchisees.
Licensed Outlets are required to adhere to all provisions of the Franchise Agreement and the Manuals concerning Approved Locations. The FDD specifies two exceptions: repair, maintenance, and warranty service can be provided by or at an affiliated Approved Location rather than on-site, and Aerus does not require prior approval of the site or lease for any Licensed Outlet, as long as they receive prompt notice of the establishment and location of the outlet. The franchisee is solely responsible for the training and support of their Outlet Licensees, and Aerus has no legal obligation to these licensees. However, Aerus is a beneficiary of the franchisee's rights under agreements with Outlet Licensees and can enforce those rights.
It is important to note that these provisions regarding Outlet Licensees and Licensed Outlets do not apply to franchisees operating under the Associate Program, as they are not permitted to open additional locations, Satellites, or Licensed Outlets.