Under the Aerus franchise agreement, are the 'Electrolux', 'Lux' and derivative trademarks granted on an exclusive or non-exclusive basis?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- ii. In connection with the foregoing, there are a series of license instruments granting to us the right to use and license to you for use on a non-exclusive, non-assignable basis (subject to the terms and conditions of the Franchise Agreement and the Manuals), the "Electrolux", "Lux" and derivative trademarks for use in the sale, marketing, distribution and repair of vacuum cleaners and related accessories. The obligations of the licenses have been incorporated into the Manuals, which must be strictly adhered to. Aktiebolaget Electrolux may terminate the Electrolux Sublicense Agreement upon written notice if We, you or any of our other franchisees breach the Electrolux Sublicense Agreement. Material uncured breach of the license terms by you or any other franchisee may result in termination of the license for all franchisees.
- iii. We are a licensee, and not the owner, of the "Electrolux," "Lux," and related marks and have permission to sublicense such Marks to our franchisees. We, our affiliates and Aktiebologet Electrolux have certain inspection rights related to the use of the trademarks, including the ability to inspect your premises for proper use of the Marks. We may also issue trademark usage guidelines from time to time governing your use of the licensed Marks. The Marks may be used only in the United States if your Approved Locations are in the United States and only in Canada if your Approved Locations are 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 franchisee and identified as "Aerus" and/or "Electrolux" stores, provided such facilities offer for resale to the general public, in substantial part, only those products sold under the "Aerus" and "Electrolux" brands. You may not sell any damaged goods bearing the Marks, and repossessed or demonstration goods may be sold only with our prior approval. you may be required to assist in the protection of the Marks, and are obligated to indemnify us and our affiliates against any claim resulting from your use of the Marks 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, the trademarks 'Electrolux', 'Lux,' and their derivatives are granted to franchisees on a non-exclusive basis. This means that Aerus can authorize other franchisees or even operate its own outlets using these trademarks within the same geographic area as a franchisee. This non-exclusive arrangement is subject to the terms and conditions outlined in the Franchise Agreement and the Manuals, which franchisees must strictly adhere to.
Aktiebolaget Electrolux, the owner of the 'Electrolux' and 'Lux' trademarks, licenses Aerus to sublicense these marks to its franchisees. However, Aktiebolaget Electrolux retains the right to terminate the Electrolux Sublicense Agreement if Aerus, its franchisees, or any other franchisees breach the agreement. A significant, uncorrected breach of the license terms by a franchisee could lead to the termination of the license for all franchisees, highlighting the importance of compliance.
As a licensee of the 'Electrolux' and 'Lux' marks, Aerus, along with its affiliates and Aktiebolaget Electrolux, has the right to inspect a franchisee's premises to ensure proper use of the trademarks. Aerus may also issue trademark usage guidelines that franchisees must follow. The use of these marks is restricted to the United States or Canada, depending on the location of the Approved Locations, and is limited to direct retail sales to residential customers and retail sales from Aerus or Electrolux stores. Franchisees cannot sell damaged goods bearing the marks without prior approval, and they may be required to assist in protecting the marks, including indemnifying Aerus and its affiliates against claims arising from their use of the marks.