After the Aerus franchise is terminated or expires, for how long does the non-competition covenant apply?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| the System or any of the Products, or with our, or any of our affiliates', now existing or future developed businesses or systems. | ||
| r. Non-competition covenants after the franchise is terminated or expires | Section 6 and 15.E | For a 1-year period following termination, expiration or transfer of the franchise (or transfer of an ownership interest in the franchise entity, as applicable) you and your principals may not: promote the sale of, or sell, directly or indirectly, any floor care, air or water products or other products and services which are similar in nature to, or which are competitive substitutes for, the Products and may not undertake or participate in any business or activity which is competitive in nature with the System or any of the Products, or with our, or any of our affiliates', now existing or future developed businesses or systems. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–60)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees and their principals are subject to a non-competition covenant for one year following the termination, expiration, or transfer of the franchise. This restriction also applies to the transfer of an ownership interest in the franchise entity.
During this one-year period, franchisees are prohibited from promoting or selling floor care, air, or water products, or any other products and services that are similar to or competitive with Aerus's products. This includes both direct and indirect sales activities.
Furthermore, franchisees are barred from engaging in any business or activity that competes with the Aerus system, its products, or any existing or future businesses or systems developed by Aerus or its affiliates. This broad restriction aims to protect Aerus's market position and proprietary business model after a franchise relationship ends.