Under the Standard and Associate Programs, what limited right does the Aerus Franchise Agreement grant to franchisees within their Area of Responsibility?

According to Aerus's 2025 Franchise Disclosure Document, under both the Standard and Associate Programs, the Franchise Agreement grants franchisees a limited right within their Area of Responsibility. Specifically, franchisees have the right to offer and sell Aerus Products, excluding 'Beyond Products,' to Approved Customers. If a franchisee signs a 'Beyond Addendum,' they also gain the limited right to offer and sell 'Beyond Products' to Approved Customers within their Area of Responsibility. Franchisees who do not sign the Beyond Addendum do not have the right to offer and sell Beyond Products.

This means that an Aerus franchisee's ability to sell certain product lines is contingent on signing an additional addendum to the franchise agreement. The Area of Responsibility itself is not a fixed distance and varies based on the chosen program and the location's demographics and geography. It is important to note that Aerus franchisees do not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels controlled by Aerus.

This arrangement is fairly typical in franchising, where franchisors often retain the right to sell products through various channels, even within a franchisee's territory. Prospective Aerus franchisees should carefully consider the implications of not having an exclusive territory and the potential for competition from other sales channels. They should also evaluate the benefits of signing the 'Beyond Addendum' to determine if selling those products would significantly impact their revenue potential.