What steps must Aerus Outlet Licensees and Sales Representatives take after receiving notice of franchise termination?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) Send written notice to all Outlet Licensees and Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Outlet Licensees and 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 an 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 or Outlet Licensee), and all copies thereof.
(8) Comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, upon notification of franchise termination, Aerus Outlet Licensees and Sales Representatives must take all the steps required of the franchisee as outlined in Item 23 of the FDD. This means that the franchisee is responsible for informing all Outlet Licensees and Sales Representatives that their agreements are terminated and that they must comply with the termination requirements.
These requirements include cooperating with Aerus to transfer telephone numbers associated with the business, products, or marks to Aerus or its designee. Additionally, all assumed name filings including "Aerus", "Lux", or "Electrolux" must be cancelled. All personal property owned by Aerus or its affiliates, including consigned products, equipment, and supplies, must be returned. Franchisees must also ensure that all outstanding payments to Aerus, its affiliates, lessors, and other creditors are promptly settled.
Furthermore, all information, including customer data, confidential information (such as manuals), agreements, invoices, and any other materials related to the franchise operation, must be delivered to Aerus. This includes ensuring that any such information held by Sales Representatives or Outlet Licensees is also turned over. Finally, all parties must adhere to the non-competition covenants and restrictions on confidential information as detailed in the franchise agreement.