What warranties should the Aerus consignee provide with the consigned products?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) sell the Consigned Products only in the ordinary course of business of Consignee pursuant to the Franchise Agreement and any other instructions of Company, at the prices set by Company, and providing only the manufacturer's warranties given with the Consigned Products;
E. Franchisee understands and acknowledges that Company provides certain warranties which vary with respect to the Consigned Products and run directly to the benefit of the consumer who purchases a Consigned Product from or through any authorized distribution channel, including sales by or through the Franchised Business pursuant to this Agreement (the "Company Consumer Warranty"). Neither Franchisee, nor any of its Sales Representatives, may represent or suggest that Company has or will provide any warranty, express or implied, other than the warranty actually provided by Company. Franchisee may not extend the Company Consumer Warranty or provide or offer additional warranties above and beyond the Company Consumer Warranty. As part of the service requirement described herein, Franchisee shall honor and provide service in connection with any Company Consumer Warranty. If Franchisee does not maintain a service and repair center at the Approved Location, this requirement must be discharged and performed through a contractual arrangement with an existing owner of an Aerus Business approved by Company.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus FDD, franchisees are required to provide only the manufacturer's warranties that come with the consigned products. Aerus provides a "Company Consumer Warranty" that benefits the consumer who purchases a consigned product through any authorized distribution channel, including the franchised business. Franchisees and their sales representatives cannot represent or suggest that Aerus will provide any warranty, express or implied, other than the actual warranty provided by Aerus.
Aerus franchisees are prohibited from extending the Company Consumer Warranty or offering additional warranties beyond what Aerus provides. However, franchisees are obligated to honor and provide service in connection with any Company Consumer Warranty as part of their service requirements. If a franchisee does not have a service and repair center at their approved location, they must arrange a contractual agreement with an existing Aerus business owner approved by Aerus to fulfill this service requirement.
In practical terms, this means an Aerus franchisee must be very careful not to make any warranty claims or promises beyond the official Company Consumer Warranty. This protects Aerus from being held liable for unauthorized claims. Franchisees should ensure their sales representatives are also aware of these limitations. The requirement to provide service under the Company Consumer Warranty, even if the franchisee doesn't have a service center, highlights the importance of customer service within the Aerus franchise system.