If Aerus determines that a franchisee's behavior violates the non-compete agreement after previously not being in violation, what action can Aerus take?

According to Aerus's 2025 Franchise Disclosure Document, if Aerus determines that a franchisee's behavior, which was previously not in violation of the non-competition agreement, later violates the agreement, Aerus may require the franchisee to cease such behavior. This action can be taken if Aerus determines, in its reasonable discretion, that the franchisee's behavior now violates the agreement. Aerus will provide written notice to the franchisee to cease the behavior.

This clause is important for prospective franchisees as it highlights Aerus's ability to adapt its interpretation of the non-compete agreement over time. What might initially be considered acceptable business practices could later be deemed a violation if Aerus modifies or expands its system or product offerings. This could impact a franchisee's business operations if they need to adjust their activities to comply with Aerus's evolving standards.

It is crucial for franchisees to maintain open communication with Aerus and seek clarification on any activities that could potentially be viewed as competitive. Franchisees should also stay informed about any modifications or expansions to the Aerus system or product offerings to ensure ongoing compliance with the non-competition agreement. This proactive approach can help mitigate the risk of receiving a notice to cease certain business behaviors and avoid potential disputes with Aerus.