What is an Aerus franchisee required to do with printed or virtual materials containing Customer Data after the Franchise Agreement expires or terminates?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Immediately deliver to Company all information (including Customer Data in physical or electronic formats) and databases described herein, and all other Confidential Information (including the Manuals) and all agreements, invoices, and any and all other materials relating to the operation of the Franchised Business in Franchisee's possession or control (including any such information or materials in the possession of any Sales Representative), and all copies thereof.
- A. During the Term, neither Franchisee, nor its Operating Principal, or any other owner, shall (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, (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, or (3) use any of the Customer Data for any reason other than operation of the Franchised Business.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, upon expiration or termination of the Franchise Agreement, the franchisee must deliver to Aerus all information, including Customer Data in physical or electronic formats. This also includes databases described in the agreement, all other Confidential Information (including the Manuals), agreements, invoices, and any and all other materials relating to the operation of the franchised business in the franchisee's possession or control, including any such information or materials in the possession of any Sales Representative, and all copies thereof.
This requirement ensures that Aerus retains control over its customer information and proprietary business data after a franchise relationship ends. The franchisee is explicitly prohibited from using customer data for any reason other than operating the franchised business during the term of the agreement. This restriction extends to all forms of customer data, whether physical or electronic, and includes any databases or other materials related to the business.
This obligation is a standard practice in franchising to protect the franchisor's brand, customer relationships, and confidential information. By requiring the franchisee to return all customer data and related materials, Aerus aims to prevent the franchisee from using this information to compete with Aerus after the agreement terminates. Prospective franchisees should understand that they will not retain any ownership or rights to the customer data they collect during the franchise term and must be prepared to transfer all such data back to Aerus upon termination or expiration of the agreement.