Under what conditions can Aerus franchisees sell repossessed or demonstration goods bearing the "Electrolux" and "Lux" marks?

According to Aerus's 2025 Franchise Disclosure Document, franchisees are restricted in selling damaged, repossessed, or demonstration goods bearing the Electrolux and Lux marks. Specifically, Aerus franchisees are prohibited from selling any damaged goods with these trademarks. For repossessed or demonstration goods, franchisees can only sell them if they have obtained prior approval from Aerus.

This condition is significant for prospective franchisees as it directly impacts their ability to liquidate certain types of inventory. The requirement for prior approval from Aerus to sell repossessed or demonstration goods adds a layer of control for the franchisor, likely intended to protect the brand's reputation and ensure consistent quality standards.

Franchisees need to factor in the potential delays and uncertainties associated with obtaining approval when managing their inventory and sales strategies. This restriction is not uncommon in franchising, as franchisors often implement controls to maintain brand consistency and prevent the sale of substandard products that could harm the brand image. Therefore, franchisees should maintain detailed records of all repossessed and demonstration units and establish a clear process for seeking and obtaining the necessary approvals from Aerus before attempting to sell such items.

It is also important to note that Aerus and its affiliates retain inspection rights related to the use of trademarks, including the ability to inspect franchisee premises for proper use of the marks. This underscores the importance of adhering to all trademark usage guidelines and quality standards set by Aerus to avoid potential issues or penalties.