If I violate the non-compete agreement with Aerus, can Aerus seek an injunction against me?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Exclusivity and Non-Competition.
- 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. Further, the Approved Location 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.
- B. For a period of one (1) year after the expiration or termination of this Agreement or the transfer of all of Franchisee's interest in this Agreement, neither Franchisee, nor its Operating Principal, shall, within the Area of Responsibility or within a ten (10)-mile radius of any Aerus Business in existence or under construction as of the expiration or termination of this Agreement or the transfer of all of Franchisee's interest in this Agreement, (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 or (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. Franchisee agrees that the length of time in this Section 6(B) will be tolled for any period during which Franchisee is in breach of the covenants set forth in this Section 6(B) or any other period during which Company seeks to enforce this Agreement.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the document does not explicitly state that Aerus can seek an injunction against a franchisee for violating the non-compete agreement. However, the FDD does outline the terms of the non-compete agreement both during the term of the agreement and after its expiration or termination.
During the term of the agreement, the franchisee, its operating principal, or any other owner cannot promote the sale of, or sell, directly or indirectly, any products or services that are similar to Aerus's products. They also cannot participate in any competitive business or activity or use customer data for any reason other than operating the franchised business. After the agreement expires or terminates, the franchisee and its operating principal are restricted for one year from engaging in similar competitive activities within the Area of Responsibility or a ten-mile radius of any Aerus business.
If a franchisee breaches the non-compete agreement, Aerus may have grounds to pursue legal remedies. While the FDD does not specifically mention injunctions, it is common practice for franchisors to seek injunctive relief to prevent further competitive harm when a franchisee violates a non-compete agreement.
Prospective franchisees should consult with a legal professional to fully understand the implications of the non-compete agreement and the potential legal consequences of violating it. It would also be prudent to ask Aerus directly about their specific policies and practices regarding enforcement of the non-compete agreement, including whether they typically seek injunctive relief.