Which sections of the Aerus Franchise Agreement address the franchisee's post-termination obligations?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
with the foregoing, including instructing all publishers of any telephone directory or listing not to renew, repeat or insert any listing or advertisement using the word "Aerus", "Lux" or "Electrolux" or any other term or identifier associating Franchisee with Company.
- (2) Send written notice to all Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Sales Representatives must also take all other steps herein required of Franchisee under this Section.
- (3) Cooperate with Company in perfecting an assignment of all telephone numbers used at the Approved Location in connection with the sales of Products hereunder or otherwise known or identified as numbers associated with Company, the Products or the Marks to and into the name of Company or its nominee, taking all action necessary to effect the intent of the foregoing.
- (4) Immediately cause the cancellation or termination of any assumed name filings for the Approved Name or otherwise including the name "Aerus", "Lux" or "Electrolux" or any of the Marks.
- (5) Immediately return to Company and Company's Affiliates all items of personal property that are then owned by Company or Company's Affiliates, including Consigned Products and any equipment and supplies to which Company or Company's Affiliates hold title.
- (6) Promptly pay all sums owing to Company, Company's Affiliates, lessors and other trade creditors.
- (7) Immediately deliver to Company all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative), and all copies thereof.
- (8) Comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
- F. Upon expiration or termination of this Agreement, Franchisee shall do any one or more of the following, at Company's option:
- (1) If Franchisee operates the Franchised Business premises under a lease with a third party or, with respect to any lease for equipment used in the operation of the Franchised Business, assign to Company any interest which Franchisee has in any lease or sublease for the Approved Location or any equipment related to the Franchised Business.
- (2) If Franchisee, or any Affiliate of Franchisee, owns the Approved Location, sell or lease at market rents to Company the Franchisee's business premises including any building thereon, if applicable, for the fair market value of the land and building.
Source: Item 9 — Franchisee's Obligations (FDD pages 33–34)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, Item 23 details the franchisee’s obligations upon termination or expiration of the Franchise Agreement. Specifically, section F outlines several actions the franchisee must take at Aerus's discretion. These include assigning any lease interests for the business premises or equipment to Aerus, and if the franchisee owns the business location, selling or leasing the premises to Aerus at market value.
Additional post-termination obligations include ceasing the use of Aerus's trademarks and trade names, as well as notifying publishers and sales representatives about the termination of the franchise. The franchisee is also required to cooperate with Aerus in transferring telephone numbers associated with the business and cancel any assumed name filings that include Aerus's branding. Furthermore, the franchisee must return all company-owned property, including products, equipment, supplies, and confidential information like customer data and manuals.
Moreover, the franchisee is obligated to pay all outstanding debts to Aerus, its affiliates, lessors, and other creditors. They must also adhere to non-competition and confidentiality covenants outlined in the agreement. These comprehensive post-termination obligations are designed to protect Aerus's brand, customer relationships, and proprietary information, ensuring a smooth transition and preventing unfair competition from former franchisees.