What law governs the validity, interpretation and enforcement of the Aerus Guarantee?

According to Aerus's 2025 Franchise Disclosure Document, the validity, interpretation, and enforcement of the Aerus Guarantee, as well as any disputes arising between the guarantor and lender, are governed by the internal laws of the State of Texas. This is without regard to Texas's principles regarding conflicts of law. This means that Texas law will be applied to resolve any legal issues related to the Guarantee, regardless of whether the parties involved are located in Texas or another state.

This provision ensures that there is a clear and consistent legal framework for interpreting and enforcing the Guarantee. By specifying Texas law, Aerus aims to avoid potential conflicts or uncertainties that could arise if the laws of different states were to be applied. This can provide a level of predictability for both the guarantor and the lender in the event of a dispute.

For a prospective Aerus franchisee, this means that if they are acting as a guarantor for a loan or other financial arrangement, they should be familiar with Texas law regarding guarantees and related financial matters. Any legal proceedings related to the Guarantee would likely take place in Texas, and understanding the applicable laws is crucial for protecting their interests. It is advisable to consult with legal counsel familiar with Texas law to fully understand the implications of this provision.