We show that every rank two $p$-group acts freely and smoothly on a product
of two spheres. This follows from a more general construction: given a smooth
action of a finite group $G$ on a manifold $M$, we construct a smooth free
action on $M \times \bbS ^{n_1} \times \dots \times \bbS ^{n_k}$ when the set
of isotropy subgroups of the $G$-action on $M$ can be associated to a fusion
system satisfying certain properties. Another consequence of this construction
is that if $G$ is an (almost) extra-special $p$-group of rank $r$, then it acts
freely and smoothly on a product of $r$ spheres.