Does the confidentiality section of the Aerus franchise agreement survive the expiration or termination of the agreement?

According to Aerus's 2025 Franchise Disclosure Document, the confidentiality and non-competition sections of the franchise agreement survive the expiration or termination of the agreement. Specifically, Section 6, which covers exclusivity and non-competition, remains in effect even after the franchise agreement ends. This means that even after the agreement expires or is terminated, the franchisee is still bound by the terms outlined in that section.

This survival clause has significant implications for a former Aerus franchisee. For a period of one year after the agreement ends, the franchisee and its operating principal are restricted from promoting or selling similar products or services, or participating in any business that competes with the Aerus system. This restriction applies within the franchisee's Area of Responsibility and within a 10-mile radius of any existing or under-construction Aerus business. The duration of this restriction can be extended if the franchisee breaches these covenants or if Aerus seeks to enforce the agreement.

Such clauses are common in franchise agreements to protect the franchisor's brand, customer base, and trade secrets. The Aerus agreement ensures that former franchisees cannot immediately leverage their knowledge and experience gained during the franchise term to directly compete with the system. Prospective franchisees should carefully consider these post-termination restrictions and how they might impact their future business endeavors. It is important to understand the geographic scope and the types of activities that are prohibited after the franchise agreement concludes.