During the term of the Aerus franchise agreement, can the franchisee use the approved location for any business other than the franchised Aerus business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Exclusivity and Non-Competition.
- A. During the Term, neither Franchisee, nor its Operating Principal or any other owner, shall (1) promote the sale of, or sell, directly or indirectly, any products or services that are similar in nature to, or that are substitutes for, the Products, (2) undertake or participate in any business or activity now existing or hereafter developed businesses or systems, or (3) use any of the Customer Data for any reason other than operation of the Franchised Business. Further, Approved Locations may be used for the operation and conduct of the Franchised Business only and for no other use. Franchisee may not use the Marks in connection with any business or activities other than the Franchised Business. Company may in the future modify, expand or supplement the System or modify or add to the Products offered hereunder and Company or any of Company's Affiliates may in the future develop or offer new businesses or systems. In either event, if Company determines, in its reasonable discretion that any behavior of Franchisee previously not in violation of this Section later violates this Section, Company may require that Franchisee cease any such behavior upon written notice to Franchisee.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the approved location for the Aerus franchise must be used solely for the operation and conduct of the Aerus business. Franchisees are explicitly prohibited from using the approved location for any other purpose during the term of the franchise agreement. This restriction ensures that the franchisee focuses exclusively on the Aerus business and does not divert resources or attention to other ventures.
This requirement is common in franchising to maintain brand consistency and prevent franchisees from engaging in activities that could dilute the brand or compete with the franchised business. It also protects the franchisor's investment in the brand and the franchise system. Franchisees should carefully consider this restriction and ensure they are comfortable dedicating their business location exclusively to the Aerus franchise.
Furthermore, franchisees are not allowed to use Aerus's trademarks in connection with any business activities other than the franchised Aerus business. This reinforces the exclusivity of the franchise and prevents franchisees from leveraging the brand's reputation for other ventures. Aerus retains the right to modify, expand, or supplement the system or products offered, and franchisees must adapt to these changes. If Aerus determines that a franchisee's behavior violates these restrictions, they may require the franchisee to cease such behavior upon written notice.