Does the Aerus franchise agreement allow a franchisee to disclose confidential information under certain circumstances?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
18. Confidentiality.
A. In connection with this Agreement, Company has and may hereafter furnish to Franchisee certain Confidential Information. Furthermore, Franchisee, in connection herewith, may develop certain information that constitutes Confidential Information. Franchisee shall keep secret and retain in strictest confidence, and shall not use except in connection with the operation of the Franchised Business in accordance with this Agreement, all Confidential Information. Franchisee shall not disclose either during or after the Term of this Agreement, except as may be required by law, any Confidential Information to anyone other than those employees, agents and representatives of Franchisee or any Outlet Licensee (each of whom shall be bound as well by the provisions of this Section and for whom Franchisee shall be liable for any violations) which require such information in order to fulfill the requirements of their employment, agency or representation. Upon expiration or termination of this Agreement, all Confidential Information shall be promptly transmitted by Franchisee to Company or disposed of as instructed by Company in writing.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the franchise agreement addresses the disclosure of confidential information. Specifically, the agreement states that franchisees must keep confidential information secret and retain it in the strictest confidence, using it only in connection with operating the franchised business as outlined in the agreement.
The Aerus franchise agreement permits disclosure of confidential information only when it is legally required. In such cases, franchisees can disclose confidential information to their employees, agents, and representatives, or any Outlet Licensee who need the information to fulfill their job requirements, provided these parties are also bound by the confidentiality provisions. The franchisee is responsible for any violations of these provisions by their employees, agents, or representatives.
Upon the expiration or termination of the Aerus franchise agreement, the franchisee is obligated to promptly transmit all confidential information to Aerus or dispose of it as instructed by Aerus in writing. This obligation extends both during and after the term of the agreement, emphasizing the ongoing importance of maintaining confidentiality.