What happens if an Aerus franchisee violates any obligation of confidentiality or non-disclosure?
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.
- (8) Comply with the non-competition covenants and the restrictions on Confidential Information contained herein.
- H.
Company may, at its option, establish and maintain an Intranet through which franchisees of Company may communicate with each other, and through which Company and Franchisee may communicate with each other and through which Company may disseminate the Manuals, updates thereto and other Confidential Information.
Company shall have sole discretion and control over all aspects of the Intranet, including the content and functionality thereof.
Company will have no obligation to maintain the Intranet indefinitely, and may dismantle it at any time without liability to Franchisee.
If Company establishes an Intranet, Franchisee shall have the privilege to use the Intranet, subject to Franchisee's strict compliance with the Policies and Procedures that Company may establish from time to time.
Franchisee acknowledges that, as administrator of the Intranet, Company can technically access and view any communication that is posted on the Intranet.
Franchisee further acknowledges that the Intranet facility and all communications that are posted to it will become Company's property, free of any claims of privacy or privilege that Franchisee or any other person may assert.
Termination.
This Addendum will expire or terminate on the earlier to occur of the following: (i) termination or expiration of the Franchise Agreement; or (ii) notice from Company of Franchisee's violation of the terms and conditions of this Addendum or the Franchise Agreement.
Upon termination or expiration of this Addendum, Franchisee and the Operating Principal will (a) cease offering and selling Beyond Products; (b) cease using the Beyond Marks; (c) not thereafter use or disclose, except as otherwise required by law, any Confidential Information relating to the Beyond Products
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 FDD, an Aerus franchisee's obligations regarding confidentiality and non-disclosure extend beyond the termination or expiration of the Franchise Agreement. Specifically, in the context of an addendum related to 'Beyond Products,' if the addendum expires or terminates, the franchisee must cease using or disclosing any confidential information related to these products, except as required by law. This obligation continues even after the agreement ends.
Upon termination or expiration of the Franchise Agreement, the franchisee is required to deliver to Aerus all information, including customer data in physical or electronic formats, databases, and all other confidential information, including manuals, agreements, invoices, and any other materials related to the operation of the franchised business. This includes materials in the possession of any sales representative. The franchisee must also comply with non-competition covenants and restrictions on confidential information.
Furthermore, Aerus may establish an Intranet for communication between franchisees and the company, through which confidential information may be disseminated. While franchisees have the privilege to use the Intranet, they must strictly comply with the policies and procedures established by Aerus. Aerus, as the administrator, can access and view any communication posted on the Intranet, and all communications become the property of Aerus, free of any claims of privacy or privilege. These measures ensure Aerus maintains control over its confidential information and can monitor franchisee compliance.