Under the Aerus franchise agreement, what is the 'Franchised Business' defined as?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Company desires to grant to Franchisee, and Franchisee desires to receive and accept from Company, a license and franchise to operate an Aerus Business under the Associate Program at or from the Approved Location in accordance with the System (the "Franchised Business"), pursuant and subject to the terms, conditions and provisions of this Agreement.
The right granted under this Agreement is only for the operation of the Franchised Business in accordance with this Agreement.
Company reserves the right to provide new products and services under the System, and to require or permit new products and services to be provided, marketed, promoted, distributed or sold hereunder by Franchisee through the Franchised Business, and may, in connection therewith, without limitation (1) require Franchisee to execute an additional or supplemental agreement and (2) require the payment of a royalty.
If not an existing Aerus Business, Franchisee shall open the Franchised Business at the Approved Location not later than the Opening Date.
Notwithstanding anything herein to the contrary, without Company's prior written approval, Franchisee shall not (1) conduct the Franchised Business under any actual or assumed name other than the Approved Name, (2) sell to any person or entity that is not an Approved Customer, (3) advertise, market or solicit sales outside of the Area of Responsibility, (4) sell to any person not residing within the Area of Responsibility, (5) conduct any aspect of the Franchised Business by, through, over or on the internet or world wide web, including without limitation, advertising, marketing and solicitation, unless or until Company establishes a Company sponsored program for such conduct by Franchisees and, then, only as part of and in accordance with such program, (6) use any trade name, trademark or service mark in connection with the Franchised Business other than the Marks (and then only in strict accordance with the terms and conditions of this Agreement, the Policies and Procedures, the Manuals and any specific guidelines imposed by Company), (7) advertise or sell any product or service from the Approved Location or through the Franchised Business bearing any trade name, trademark or service mark other than the Marks, (8) sell any product or service that is not a Product, or (9) permit any Product to be sold from any
Franchisee's activities shall be confined exclusively to the ownership and operation of an Aerus Business, unless Company otherwise consents in writing;
The individual executing this Agreement is duly authorized to so execute, has appropriate authority to bind Franchisee as provided hereunder, and is an active, full-time participant in the daily operations of the Franchised Business
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee a license to operate an Aerus Business under the Associate Program at the Approved Location in accordance with the System. The agreement specifies that the franchisee's rights are solely for the operation of the Franchised Business as outlined in the agreement. Aerus retains the right to introduce new products and services under the System, which the franchisee may be required to provide, market, or sell through the Franchised Business. This may involve executing additional agreements and paying royalties.
The Aerus franchisee must open the Franchised Business at an Approved Location by the Opening Date. Aerus will specify any necessary modifications or improvements to the premises, which the franchisee must complete at their own expense before the Opening Date or within a specified timeframe after it. The franchisee is restricted from conducting the Franchised Business under any name other than the Approved Name without prior written consent from Aerus.
Additionally, the franchisee cannot sell to anyone who is not an Approved Customer, advertise outside the Area of Responsibility, or sell to individuals residing outside of it. Conducting any aspect of the Franchised Business online is prohibited unless Aerus establishes a company-sponsored program for franchisees. The franchisee is also restricted from using any trade names, trademarks, or service marks other than the Marks approved by Aerus and from selling any products or services that are not Products approved by Aerus.
If the franchisee is a business entity, its activities must be confined exclusively to the ownership and operation of an Aerus Business, unless Aerus provides written consent otherwise. The franchisee must provide certified copies of its organizational documents and any amendments to Aerus for review. The individual executing the agreement must be authorized to do so and be an active, full-time participant in the daily operations of the Franchised Business.