In the event of litigation related to the agreement, does an Aerus franchisee waive their right to a jury trial?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ithin either (a) the State of Texas; or (b) in any jurisdiction wherein Debtor resides or owns property. If Secured Party brings an action against Debtor in any state or federal court located, Debtor accepts generally and unconditionally the jurisdiction and venue of the aforesaid courts and waives any defense of forum non-conveniens.
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- WAIVER OF JURY TRIAL. SECURED PARTY AND DEBTOR AGREE THAT IN ANY LITIGATION, SUIT, ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS, OR RELATES TO THIS AGREEMENT, ANY AND ALL TRANSACTIONS CONTEMPLATED HEREUNDER, THE PERFORMANCE OF THIS AGREEMENT, OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT JURISDICTION AND NOT TO A JURY. SECURED PARTY AND DEBTOR HEREBY IRREVOCABLY WAIVE ANY RIGHT EITHER PARTY MAY HAVE TO A TRIAL BY JURY.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, both the secured party and the debtor (franchisee) agree that any litigation arising from the agreement will be tried in a court of competent jurisdiction, not a jury. Both parties irrevocably waive their right to a trial by jury. Either party can file a copy of the agreement with any court as evidence of this consent.
This means that if a dispute arises between Aerus and a franchisee that leads to a lawsuit, the case will be decided by a judge rather than a jury. This can have significant implications for the franchisee, as a judge may have different biases or legal interpretations than a jury of peers. Jury trials are often perceived as more favorable to the 'little guy', so waiving this right could put the franchisee at a disadvantage.
However, the FDD also includes a North Dakota addendum that states "The waiver of trial by jury may not be enforceable under the North Dakota Franchise Investment Law." This suggests that the enforceability of the jury trial waiver may vary depending on the franchisee's location and applicable state laws. Prospective franchisees should consult with a legal professional to understand the implications of this waiver in their specific jurisdiction.