What is the amount that I, as an Aerus franchisee, must pay for breach of the non-compete covenants in addition to other remedies available to Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Company in connection with the enforcement of this Section, including payment of all expenses for obtaining specific performance of, or an injunction against violation of, the requirements of this Section.
D. For breach of the covenants in this Section 6, which are made in consideration of the specialized training and confidential information conveyed to Franchisee, and due to the difficulty of establishing the precise amount of damages for breach of these covenants, in addition to the other remedies provided for in this Agreement or otherwise available to Company, Franchisee and Franchisee's principals who committed such breach jointly and severally agree to pay Company the amount of One Thousand Five Hundred Dollars ($1,500) per day for each day the
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a franchisee breaches the non-compete covenants, they, along with their principals who committed the breach, must pay Aerus $1,500 per day for each day the breach continues. This payment is in addition to any other remedies available to Aerus.
This daily penalty is intended to compensate Aerus for the damages resulting from the breach, recognizing the difficulty in precisely calculating those damages. The non-compete covenants are in place because the franchisee receives specialized training and confidential information.
However, this liquidated damages clause does not apply to franchises in Minnesota or North Dakota. Aerus also has the right to seek an injunction to stop the franchisee from violating the non-compete agreement, and the franchisee consents to this without Aerus needing to prove actual harm or provide a bond. The franchisee is also responsible for covering all court costs and reasonable attorney's fees Aerus incurs while enforcing this section.