Under the Aerus Franchise Agreement (Standard Program), what schedules are attached to the agreement and what information do they contain?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
xpense | -1 | | | | Taxes | 27 | | | | Tax Provision | | | | | Net Income (Loss) | 903 | | | | | | | |
EXHIBIT 2(a)
FRANCHISE AGREEMENT (Standard Program), LEASE RIDER, SOFTWARE LICENSE AGREEMENT AND CONSIGNED PRODUCTS SECURITY AGREEMENT
FRANCHISE AGREEMENT (Standard Program)
THIS FRANCHISE AGREEMENT (Standard Program) (the "Agreement") is made effective as of the date shown on the signature page hereto (the "Effective Date") and is made between Aerus Franchising, LLC, a Delaware limited liability company, having its principal place of business at 14841 Dallas Parkway, Suite 500, Dallas, Texas 75254 ("Company") and the entity or individual executing this Agreement as "Franchisee" and having its primary residence or principal place of business at the address set forth in Schedule 1, attached hereto ("Franchisee"). Franchisee represents that the ownership interests shown in Schedule 2 attached hereto are true, complete and correct. Certain capitalized terms and phrases are used in this Agreement with the meanings assigned in Addendum A, attached hereto, which is incorporated herein by reference.
R E C I T A L S
- A. Company grants franchises to qualified individuals and business entities for the right to establish and operate businesses that (i) market, distribute and sell the Company's and its Affiliates' line of air purification, water purification, water conditioning, floor care and other environmental products for homes and businesses, including accessories, attachments, parts and supplies; (ii) provide testing for environmental contaminants and market, distribute and sell products, services and treatments for the control of indoor environmental contaminants; and (iii) perform product repair, maintenance and related services for our products and certain products of our competitors (collectively, the "Proprietary Products"). The Proprietary Products bear or are identified by the trade name, trademark or service mark "Beyond", "Beyond by Aerus", "Aerus", "Lux", "Electrolux" or certain other indicia owned, licensed or otherwise contracted for by Company (the "Proprietary Marks") and are marketed, distributed and sold through (among other channels) a network of independent franchisees, operating from permitted fixed locations, and their permitted distributors, licensees and sales representatives, who each assume responsibility for their own marketing, promotion, sales and distribution of the Proprietary Products, directly or indirectly, to the end-user, consuming public.
- B. Company and its Affiliates have developed a distinctive and proprietary system (the "Proprietary System") for establishing and operating businesses that offer and sell the Proprietary Products.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, several schedules are attached to the Standard Program Franchise Agreement, each containing specific information relevant to the franchise operation. Schedule 1 outlines the franchisee's primary residence or principal place of business, the opening date for the franchised business, and the duration of the initial and renewal terms of the agreement. It also specifies the protected area granted to the franchisee. Schedule 2 details the ownership interests in the franchise. Schedule 3 specifies the initial franchise fee, location closure fee, minimum local advertising expense, and new location fee. Schedule 4 outlines the minimum sales requirements for the franchise.
These schedules are integral parts of the Aerus Franchise Agreement, providing clarity and specificity regarding the franchisee's obligations, rights, and operational parameters. For a prospective franchisee, understanding the details within these schedules is crucial for assessing the financial investment, operational expectations, and territorial rights associated with the franchise.
The schedules cover essential aspects such as fees, advertising commitments, sales targets, and the duration and location of the franchise. These elements directly impact the franchisee's financial planning, marketing strategies, and overall business operations. Therefore, careful review and consideration of these schedules are vital for making an informed decision about investing in an Aerus franchise.
Prospective franchisees should pay close attention to how the minimum sales requirements in Schedule 4 are defined and whether they are achievable within their designated territory. Additionally, understanding the limitations and conditions related to the protected area in Schedule 1 is important for assessing the potential for competition from other Aerus franchisees or company-owned operations.