What must an Aerus franchisee do with Confidential Information upon expiration or termination of the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
We have and may after execution of the Franchise Agreement furnish to you certain Confidential Information. In addition, you may develop certain information which constitutes Confidential Information. You must keep secret and retain in strictest confidence, all Confidential Information. You may only use Confidential Information in connection with the operation of the Franchised Business in accordance with the Franchise Agreement. Upon expiration or termination of the Franchise Agreement, you must promptly transmit all Confidential Information to us or dispose of it as instructed by us in writing.
"Confidential Information" means any and all information, knowledge, know-how, methods, trade secrets, techniques and materials used in or related to an Aerus Business, including the Franchised Business, or the System, which we may provide to you, including without limitation the Manuals and all of their content, the Customer Data, the Software and Administration Systems, all plans and specifications, all marketing information and strategies, all site evaluation and selection information, all selling and operating techniques and all other unique or proprietary information communicated in writing and through other means, including electronic media, as `well as all databases and customer lists and information generated by or through the Franchised Business.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 51–53)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding confidential information upon the expiration or termination of their Franchise Agreement. Aerus requires that the franchisee must promptly transmit all Confidential Information to Aerus or dispose of it as instructed by Aerus in writing. This means that franchisees cannot retain or continue to use any confidential information related to the Aerus business after the agreement ends, ensuring the protection of Aerus's proprietary assets.
Confidential Information is broadly defined as any information, knowledge, know-how, methods, trade secrets, techniques, and materials used in or related to an Aerus Business, including the Franchised Business, or the System. This includes, but is not limited to, the Manuals and all of their content, the Customer Data, the Software and Administration Systems, all plans and specifications, all marketing information and strategies, all site evaluation and selection information, all selling and operating techniques and all other unique or proprietary information communicated in writing and through other means, including electronic media, as well as all databases and customer lists and information generated by or through the Franchised Business.
This requirement is standard practice in franchising to protect the franchisor's intellectual property and trade secrets. The franchisee's responsibility to either return or destroy the confidential information ensures that it cannot be used to compete with Aerus or shared with competitors. Prospective franchisees should understand the breadth of what Aerus considers confidential information and be prepared to comply with these requirements at the end of their franchise term.