Does the Aerus Franchise Disclosure Document contain all agreements related to renewal, termination, transfer and dispute resolution?

According to Aerus's 2025 Franchise Disclosure Document, Item 17 provides a summary of important provisions related to renewal, termination, transfer, and dispute resolution within the franchise agreement and related agreements. The FDD states that prospective franchisees should carefully read these provisions in the agreements attached to the disclosure document. This indicates that the FDD itself contains summaries of these key areas, but the full details are found in the actual agreements that are part of the complete document.

The table in Item 17 outlines various categories related to the franchise relationship, referencing specific sections within the agreement. For instance, it covers non-competition covenants after termination or expiration, modifications to the agreement, integration/merger clauses, dispute resolution through arbitration or mediation, choice of forum, and choice of law. These summaries provide a high-level overview, directing franchisees to the relevant sections of the franchise agreement for complete information.

Specifically regarding dispute resolution, the FDD states that except for injunctive relief, all disputes must be arbitrated before litigation. It also notes that Aerus will not be liable for more than the Standard Allocation paid during the prior 6 months. Furthermore, disputes must be submitted to arbitration in Dallas, Texas, although an award of $100,000 or more may be subject to further court review, and state law may dictate local law and venue. These provisions define the processes and limitations involved in resolving conflicts between Aerus and its franchisees.

The FDD also addresses conditions for termination, such as violations of confidentiality, failure to meet sales requirements, misrepresentations, or conduct that reflects unfavorably on Aerus. These conditions highlight the importance of adhering to the franchise agreement and maintaining certain standards of operation. The document also clarifies that the franchise agreement, along with the manuals, constitutes the entire agreement, emphasizing that only the terms within these documents are binding, subject to state law.