What section of the Aerus Franchise Agreement addresses territorial development and minimum sales requirements?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- FF. "Minimum Sales Requirements" mean the requirements and minimum sales quantities more specifically described on Schedule 4, attached hereto.
Except as provided in the Franchise Agreement, we will not establish, or permit or authorize any person or entity other than you to establish a physical location for the operation of an Aerus Business within a one mile radius of your Approved Location (the "Protected Area"). There are no circumstances that would permit us to modify your Protected Area.
You are generally required to sell all Products within the Area or Responsibility, however, 10% of your Gross Sales in any calendar quarter may be attributable to sales made to persons or entities who reside outside of the Area of Responsibility.
Failure to Meet Minimum Sales Requirements. If you fail to meet the Minimum Sales Requirement, we may terminate the Franchise Agreement. The Minimum Sales Requirements should not be construed as a representation of possible earnings. We make no representation that you will achieve the Minimum Sales Requirements.
Source: Item 9 — Franchisee's Obligations (FDD pages 33–34)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Item 23 defines "Minimum Sales Requirements" as the requirements and minimum sales quantities described on Schedule 4 of the Franchise Agreement. Item 12 discusses the franchisee's Area of Responsibility and Protected Area, noting that franchisees are generally required to sell all products within their Area of Responsibility, although 10% of gross sales in any calendar quarter may be attributable to sales outside of this area.
Item 12 also states that Aerus may terminate the Franchise Agreement if a franchisee fails to meet the Minimum Sales Requirements. However, the FDD clarifies that these requirements should not be interpreted as a guarantee of possible earnings, and Aerus makes no representation that franchisees will achieve them.
Item 12 outlines the Protected Area, stating that Aerus will not establish or authorize another entity to establish a physical Aerus business within a one-mile radius of the franchisee's Approved Location, except as provided in the Franchise Agreement. The FDD specifies that there are no circumstances that would permit Aerus to modify the Protected Area.