What rights can the Aerus Franchisee grant to Outlet Licensees?

According to the 2025 Aerus FDD, the franchise agreement between Aerus and its franchisees dictates the rights that a franchisee can extend to Outlet Licensees and Sales Representatives. Specifically, any licenses or agreements made by the franchisee with Outlet Licensees and Sales Representatives are automatically terminated if the franchise agreement between Aerus and the franchisee is terminated.

This means that an Aerus franchisee's ability to grant rights to Outlet Licensees is entirely dependent on the continued validity of their own franchise agreement with Aerus. If the franchisee's agreement is terminated for any reason, all agreements with Outlet Licensees are immediately voided. This creates a risk for both the franchisee and any Outlet Licensees they may have, as the Outlet Licensees' rights are derivative of the franchisee's rights.

This condition is fairly standard in franchising, as the franchisor wants to maintain control over the brand and customer experience. By ensuring that Outlet Licensee agreements are tied to the underlying franchise agreement, Aerus can prevent unauthorized or non-compliant operations from continuing if a franchisee is terminated. Prospective franchisees should carefully consider this when evaluating the potential risks and rewards of investing in an Aerus franchise, especially if their business plan involves utilizing Outlet Licensees.