Under what conditions can Aerus Concepts terminate the Aerus License Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The trademark "Aerus" is owned by our affiliate Aerus Concepts, L.P. ("Aerus Concepts"). We obtained our right to use certain "Aerus" marks and the System pursuant to a license agreement with Aerus Concepts dated August 27, 2001 (the "Aerus License Agreement").
i. Based upon rights granted to us, we are licensing to you, on a non-exclusive, non-assignable basis (subject to the Franchise Agreement and the Manuals, as applicable), the trademark "Aerus" and if you are a franchisee who has executed a Beyond Addendum, the trademark "Beyond", in each instance, for use in the sale, marketing, distribution and repair of various household products, vacuum cleaners and related accessories. Aerus Concepts may terminate the Aerus License Agreement upon written notice if we or you breach the Aerus License
Agreement. Material, uncured breach of the license terms by you or any other franchisee might result in termination of the license for all franchisees.
ii. We and our affiliates have certain inspection rights related to the use of the "Aerus" and "Beyond" trademarks, including the ability to inspect your premises for proper use of the mark. We may also issue trademark usage guidelines from time to time governing your use of the Marks. If you fail to conform to the quality requirements or usage guidelines, we may terminate or suspend your license to use the Marks. The Marks may be used only in the United States if your Approved Location or Development Area is in the United States and only in Canada if your Approved Location or Development Area is in Canada and only in (i) direct retail sales to residential customers (meaning door-to-door sales and other sales to residential end-users in a manner other than from a fixed, store location open to the general public but not including sales over the Internet or other electronic communications media); and (ii) retail sales to consumers from facilities owned or leased by us or our franchisees and identified as "Beyond by Aerus", "Aerus" and/or "Electrolux" stores. You may be required to assist in the protection of the mark, and are obligated to indemnify us and our affiliates against any claim resulting from your use of the mark on products or materials.
Source: Item 13 — Trademarks (FDD pages 47–51)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus Concepts, L.P. ("Aerus Concepts") owns the trademark "Aerus" and licenses it to Aerus. Aerus then sublicenses the trademark to its franchisees for use in their Aerus businesses. Aerus Concepts can terminate the Aerus License Agreement with Aerus if Aerus or the franchisee breaches the Aerus License Agreement. A material, uncured breach of the license terms by a franchisee could result in the termination of the license for all franchisees.
Aerus and its affiliates have inspection rights related to the use of the "Aerus" trademark, including the ability to inspect the franchisee's premises for proper use of the mark. Aerus may also issue trademark usage guidelines from time to time governing the franchisee's use of the marks. If a franchisee fails to conform to the quality requirements or usage guidelines, Aerus may terminate or suspend the franchisee's license to use the marks.
The "Aerus" trademark may be used only in the United States or Canada, depending on the location of the Approved Location or Development Area. The trademark can only be used in (i) direct retail sales to residential customers (door-to-door sales and other sales to residential end-users other than from a fixed, store location open to the general public but not including sales over the Internet or other electronic communications media); and (ii) retail sales to consumers from facilities owned or leased by Aerus or its franchisees and identified as "Beyond by Aerus", "Aerus" and/or "Electrolux" stores. Franchisees may be required to assist in the protection of the mark and are obligated to indemnify Aerus and its affiliates against any claim resulting from their use of the mark on products or materials.