What restrictions and limitations must the Aerus Franchisee retain when engaging Outlet Licensees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall be permitted, at its own cost and expense, to hire and retain such employees, consultants and agents as Franchisee may deem necessary in establishing and operating the Franchised Business.
Additionally, Franchisee shall be permitted to employ or engage, on forms reasonably acceptable to Company and which grant no greater rights and retain at least the same restrictions and limitations as this Agreement, Sales Representatives who shall operate in accordance with this Agreement and the Manuals, including the Policies and Procedures.
Franchisee shall have sole authority and discretion regarding all employment matters, including without limitation, hiring, firing, discipline, compensation, benefits and scheduling.
Notwithstanding the generality of the foregoing, Company may from time to time set minimum staffing requirements and hours of operation for Approved Locations in the Manuals.
- F.
Except as provided in this Agreement, Company will not establish, permit or authorize any person or entity other than Franchisee to establish a physical location for the operation of any Aerus Business under any of the four Programs listed in Recital C within the area identified as the Protected Area in Schedule 1, attached hereto (the "Protected Area").
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, when engaging Outlet Licensees, the franchisee must use forms that are reasonably acceptable to Aerus. These forms must not grant greater rights to the Outlet Licensees than the franchisee possesses under the Franchise Agreement. The forms must also retain at least the same restrictions and limitations as outlined in the Franchise Agreement.
This means that an Aerus franchisee cannot delegate more rights to an Outlet Licensee than they themselves have. All restrictions and limitations that apply to the franchisee also apply to the Outlet Licensee. This ensures that Aerus maintains control over how its products are sold and its brand is represented.
Upon termination of the Franchise Agreement, the Aerus franchisee is obligated to send written notice to all Outlet Licensees, informing them that their licenses or agreements are terminated. The Outlet Licensees must then take all necessary steps required of the franchisee under the relevant section of the agreement. This provision ensures a clean break and prevents confusion or continued operation under the Aerus brand after the franchise agreement ends.