If an Aerus franchisee violates any obligation of confidentiality, can Aerus terminate the agreement?
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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the franchise agreement may be terminated prior to its natural expiration if certain events occur, which are considered material breaches or defaults of the agreement. While the document does not explicitly state that a breach of confidentiality is grounds for termination of the agreement, Item 23 outlines the obligations of the franchisee upon termination or expiration of the agreement, including restrictions on the use of confidential information. Specifically, the franchisee must deliver to Aerus all information (including Customer Data in physical or electronic formats) and databases, 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. The franchisee must also comply with the restrictions on Confidential Information contained within the agreement.
Additionally, in the event of termination of the Beyond Products Addendum, the franchisee must cease using the Beyond Marks and not thereafter use or disclose, except as otherwise required by law, any Confidential Information relating to the Beyond Products.
Because the excerpt does not explicitly state that Aerus can terminate the agreement if a franchisee violates confidentiality obligations, it would be prudent for a prospective franchisee to seek clarification from Aerus regarding the specific circumstances under which the franchise agreement can be terminated, including any potential consequences for breaches of confidentiality.