After the Aerus franchise agreement expires or terminates, for how long is the franchisee restricted from competing with Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. For a period of one (1) year after the expiration or termination of this Agreement or the transfer of all of Franchisee's interest in this Agreement, neither Franchisee, nor its Operating Principal, shall, within the Area of Responsibility or within a ten (10)-mile radius of any Aerus Business in existence or under construction as of the expiration or termination of this Agreement or the transfer of all of Franchisee's interest in this Agreement, (1) promote the sale of, or sell, directly or indirectly, any products or services that are similar in nature to, or that are substitutes for, the Products, or (2) undertake or participate in any business or activity that is competitive in nature with the System or any of the Products, or with Company's, or any of Company's Affiliates', now existing or hereafter developed businesses or systems. Franchisee agrees that the length of time in this Section 6(B) will be tolled for any period during which Franchisee is in breach of the covenants set forth in this Section 6(B) or any other period during which Company seeks to enforce this 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
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees face a one-year non-compete obligation after the franchise agreement expires or terminates. This restriction applies to both the franchisee and their Operating Principal.
The non-compete clause prevents franchisees from promoting or selling products or services similar to Aerus's, or participating in businesses competitive with the Aerus system. This restriction is limited to the franchisee's Area of Responsibility or within a 10-mile radius of any existing or under-construction Aerus business at the time of termination or transfer.
It's important to note that the one-year period can be extended if the franchisee breaches the non-compete covenants. The duration of the breach is added to the original one-year term, effectively prolonging the restriction. This ensures Aerus can enforce the agreement and protect its market presence. This non-compete clause survives the termination or expiration of the agreement, meaning Aerus can still enforce it even after the franchise relationship ends.