Does the term 'You' include the owners of a business entity when purchasing an Aerus franchise?

According to Aerus's 2025 Franchise Disclosure Document, the definition of "You" is specific to the entity purchasing the franchise. The FDD clarifies that "You" refers to the individual, corporation, partnership, limited liability company, or other business entity that is purchasing the Aerus franchise. However, this definition has an important exception. For business entities other than sole proprietorships, the term "You" does not extend to include the owners of that business entity. This distinction is crucial for understanding the legal and contractual obligations within the franchise agreement.

For a prospective Aerus franchisee, this means that if you are purchasing the franchise as a corporation or LLC, the obligations and rights under the franchise agreement primarily apply to the business entity itself, not directly to the individual owners or shareholders of that entity. This can have implications for liability, responsibility for day-to-day operations, and the enforcement of the franchise agreement. The Operating Principal will be the individual primarily responsible for the business. If the franchisee is an individual, they will be the Operating Principal.

This definition is fairly standard in the franchise industry, as franchisors typically contract with a legal entity to ensure clarity and limit direct liability to individual owners. However, franchisees should be aware that personal guarantees are often required, which can still expose individual owners to financial risk if the franchise fails to meet its obligations. Therefore, it is essential for prospective Aerus franchisees to carefully review the franchise agreement and any related documents with legal counsel to fully understand their rights and obligations, especially concerning personal liability and the role of the business entity's owners.