What are Aerus franchisees prohibited from doing with Customer Data obtained through the Franchised Business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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. Further, Approved Locations may be used for the operation and conduct of the Franchised Business only and for no other use. Franchisee may not use the Marks in connection with any business or activities other than the Franchised Business. Company may in the future modify, expand or supplement the System or modify or add to the Products offered hereunder and Company or any of Company's Affiliates may in the future develop or offer new businesses or systems. In either event, if Company determines, in its reasonable discretion that any behavior of Franchisee previously not in violation of this Section later violates this Section, Company may require that Franchisee cease any such behavior upon written notice to Franchisee.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD pages 54–56)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are restricted in how they can use customer data. Specifically, Aerus franchisees cannot promote or sell products or services that are similar to or substitutes for Aerus products. They are also prohibited from using customer data for any purpose other than operating their franchised business. This restriction applies during the term of the franchise agreement.
This means an Aerus franchisee must not leverage the customer data acquired through their Aerus franchise to market or sell competing products or services, either directly or indirectly. The franchisee's approved location can only be used for conducting the Aerus franchised business and no other activities. Additionally, franchisees are not allowed to use Aerus's trademarks for any business other than the franchised Aerus business.
These limitations are designed to protect Aerus's market position and prevent franchisees from using proprietary customer information to benefit competing ventures. After the franchise agreement expires or terminates, or if the franchisee transfers their interest in the agreement, these restrictions continue for one year within the Area of Responsibility or within a ten-mile radius of any Aerus business. This post-term restriction reinforces Aerus's control over its customer data and market presence, even after a franchisee exits the system.
Aerus retains the right to modify, expand, or supplement the System or the Products offered. If Aerus determines that a franchisee's behavior, previously not in violation, now violates these restrictions due to changes in the System or Products, Aerus can require the franchisee to cease such behavior upon written notice. This clause provides Aerus with the flexibility to adapt its business model and protect its interests as the market evolves.