Are section headings used for interpreting the provisions of the Aerus Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
material effect upon the ongoing operation of the Franchised Business required under this Agreement.
Company may, from time to time, authorize certain other items to be excluded from Gross Sales. Any such permission may be revoked or withdrawn at any time in writing by Company at its option.
Y. "Initial Franchise Fee" means the fee payable by Franchisee to Company upon execution of this Agreement in an amount specified in Schedule 3, attached hereto.
- Z. "Initial Term" has the meaning assigned in Section 2.
- AA. "Licensed Outlet" has the meaning assigned in Section 1.C.
BB. "Location Closure Fee" means a fee due by Franchisee with any closing of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
CC. "Manuals" mean the confidential operations manuals, including the Policies and Procedures, and such other manuals and written materials (including electronically stored or communicated materials) that Company may develop or have developed for use in the operation of Aerus Businesses, including the Franchised Business (as the same may be revised by Company from time to time). The Manuals may contain mandatory and suggested specifications, standards and operating procedures that Company develops for the System and information relating to other obligations of Franchisee. Any required specifications, standards, and/or operating procedures exist to protect Company's interests in the System and the Marks and to create a uniform customer experience. They are not for the purpose of establishing any control or duty to take control over the day-to-day operational matters reserved to Franchisee.
- DD. "Marks" has the meaning assigned in Recitals A and C.
EE. "Minimum Local Advertising Expense" means the amount expended each year by Franchisee on local advertising, public relations, and promotion in the Area of Responsibility and specified in Schedule 3, attached hereto.
FF. "Minimum Sales Requirements" mean the requirements and minimum sales quantities more specifically described on Schedule 4, attached hereto.
GG. "New Location Fee" means a fee due by Franchisee with any opening or acquisition of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
HH. "Opening Date" shall be the date on or prior to which Franchisee shall open the Franchised Business to the public, which date shall be the date specified in Schedule 1, attached hereto.
II. "Operating Principal" means the individual having an ownership interest in Franchisee of at least ten percent (10%), designated by Franchisee to act as Franchisee's representative to Company and who shall have the authority to act on behalf of Franchisee.
JJ. "Outlet Licensee" means any individual or entity engaged by Franchisee to establish, on a non-exclusive basis in accordance with the Policies and Procedures, Licensed Outlets within the Area of Responsibility, relying only upon Franchisee for all purposes but having responsibility to both Franchisee and Company, and which shall constitute a part of the Franchised Business.
- KK. "Payment" has the meaning assigned in Section 7.A.
LL.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, section headings are used to define terms and interpret provisions within the agreement. For example, the definition of "Initial Term" is found in Section 2, as stated in the definition provided in Item 23. Similarly, the definition of "Licensed Outlet" is assigned in Section 1.C. The definition of "Company Consumer Warranty" is assigned in Section 10.E, "FAST" is assigned in Section 4.C, and "FOAS" is assigned in Section 4.
These references to specific sections of the Aerus Franchise Agreement indicate that the agreement is organized into sections, and these sections are used to provide context and meaning to various terms and conditions. This organizational structure helps to clarify the obligations and rights of both the franchisor and the franchisee by directing them to specific parts of the agreement for definitions and explanations.
For a prospective Aerus franchisee, this means that understanding the structure of the Franchise Agreement and how terms are defined within specific sections is crucial. When reviewing the agreement, franchisees should pay close attention to the section headings and cross-references to ensure they fully understand their rights and obligations. This also highlights the importance of carefully reading and understanding the entire document, as specific terms and conditions are explicitly linked to particular sections.