Under what condition does the Acknowledgement of Principals section NOT apply to an Aerus franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ACKNOWLEDGEMENT OF PRINCIPALS
(does not apply if Franchisee is an individual)
Each of the undersigned acknowledges and agrees that the execution of the attached Guaranty is in partial consideration for, and a condition to, the granting of the rights under the Franchise Agreement, and that Company would not have granted such rights without the execution of the Guaranty by each of the undersigned.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Acknowledgement of Principals section does not apply if the franchisee is an individual. This means that if a person is applying for an Aerus franchise in their own name, rather than through a corporation or other business entity, they will not need to have principals acknowledge the guaranty.
This acknowledgement typically involves principals of a franchisee entity (like corporate officers or partners) guaranteeing the franchisee's obligations under the Franchise Agreement. This provides Aerus with an additional layer of security, ensuring that individuals with a significant stake in the franchisee's business are personally liable for the franchisee's performance.
For a prospective franchisee, this means that if you are applying as an individual, you will not need to involve other parties in guaranteeing your obligations. However, if you are applying through a business entity, the principals of that entity will need to execute the guaranty, acknowledging their personal responsibility for the franchise's adherence to the Franchise Agreement.