In the event of a violation of the confidentiality terms, does an Aerus franchisee consent to an injunction?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
s Agreement
- C. This Section 6 shall survive the expiration or termination of this Agreement. No claim Franchisee may have against Company, whether or not arising from this Agreement, shall
constitute a defense to the enforcement by Company of the covenants provided for in this Section. Franchisee acknowledges that a violation of the terms of this Section would result in irreparable injury to Company for which no adequate remedy at law may be available, and, notwithstanding any other requirement herein to arbitrate disputes, Franchisee accordingly consents to the issuance of an injunction prohibiting any conduct by Franchisee in violation of the terms of this Section without the necessity of showing actual or threatened harm, likelihood of success on the merits of the claims and without being required to furnish a bond or other security. Franchisee 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 breach continues.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees acknowledge that violating confidentiality terms would cause irreparable harm to Aerus, for which monetary compensation may not be adequate. Therefore, franchisees consent to an injunction that would prohibit any actions violating these terms. This consent is given regardless of any general requirements to arbitrate disputes.
This means that Aerus can seek immediate court intervention to stop a franchisee from breaching confidentiality agreements, without needing to prove actual or threatened harm or provide a financial bond. This is a significant advantage for Aerus, as it allows them to quickly address potential damage caused by a breach of confidentiality.
Furthermore, the Aerus franchisee is responsible for covering all legal costs, including attorney's fees, incurred by Aerus in enforcing Section 19, which includes obtaining specific performance or an injunction against any violations. In addition to other remedies available to Aerus, a franchisee may also have to pay Aerus $5,000 per occurrence for breaching confidentiality due to the difficulty of establishing the precise amount of damages.