What specific laws should prospective Aerus franchisees consult regarding venue restrictions in the franchise agreement in California?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
The franchise agreement requires application of the laws of the State of Texas. This provision may not be enforceable under California law.
The maximum interest rate in California is 10% annually. We do not offer financing to California franchises.
Neither the Franchisor nor any person listed in Item 2 of this offering circular is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.
No disclaimer, questionnaire, clause, or statement signed by a franchisee in connection with the commencement of the franchise relationship shall be construed or interpreted as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on or the right to rely upon any statement made or information provided by any franchisor, broker or other person acting on behalf of the franchisor that was a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
OUR WEBSITES (www.aerusonline.com and www.beyondbyaerus.com) HAVE NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the franchise agreement requires application of the laws of the State of Texas. However, this provision may not be enforceable under California law. Additionally, the document states that no disclaimer, questionnaire, clause, or statement signed by a franchisee can be construed as waiving any claim of fraud in the inducement, whether common law or statutory, or as disclaiming reliance on any statement made by Aerus or someone acting on their behalf if that statement was a material inducement to the franchisee's investment. This specific provision supersedes any other inconsistent term in any document executed in connection with the franchise.
Furthermore, no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Aerus or someone acting on their behalf. This provision also supersedes any other term in any document related to the franchise agreement.
Finally, the FDD indicates that Aerus's websites have not been reviewed or approved by the California Department of Financial Protection and Innovation. Any complaints about the website's content can be directed to the California Department of Financial Protection and Innovation at their website.