Is an Aerus franchisee required to have their employees sign confidentiality agreements, and if so, what are the requirements of those agreements?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
At our request, you must require your manager and any personnel having access to any of our Confidential Information to sign agreements that will require them to maintain the confidentiality of information they receive in connection with their employment by you at your Franchised Business. The agreements must be in a form satisfactory to us, including specific identification of us as a third-party beneficiary of the covenants with the independent right to enforce them and that they prohibit any direct or indirect ownership in a competing 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 are required to have their managers and personnel with access to confidential information sign confidentiality agreements at Aerus's request. These agreements ensure that employees maintain the confidentiality of the information they receive during their employment. Aerus is identified as a third-party beneficiary, granting them the independent right to enforce the agreements.
The confidentiality agreements must be in a form satisfactory to Aerus. These agreements must also prohibit any direct or indirect ownership in a competing business. This requirement protects Aerus's confidential information and prevents employees from using that information to benefit a competitor.
This requirement is fairly standard in franchising, especially when dealing with proprietary systems, customer data, and trade secrets. It ensures that sensitive business information remains protected and that the franchisor has recourse if confidentiality is breached. Prospective Aerus franchisees should carefully review the specific requirements for these agreements to ensure compliance and avoid potential penalties.