Does the liquidated damages clause apply to Aerus franchises in Minnesota or North Dakota?

According to Aerus's 2025 Franchise Disclosure Document, the liquidated damages clause within the franchise agreement does not apply to franchises located in the states of Minnesota or North Dakota. This means that if an Aerus franchisee in Minnesota or North Dakota breaches the franchise agreement, Aerus cannot invoke a pre-determined liquidated damages penalty.

For a prospective franchisee in Minnesota or North Dakota, this is a beneficial provision. Liquidated damages clauses can sometimes be substantial and difficult to contest. The absence of this clause provides more legal protection and flexibility should a dispute arise with Aerus.

However, it is important to note that while the liquidated damages clause is not applicable, Aerus would still likely have other legal remedies available in the event of a breach of contract, such as seeking actual damages or injunctive relief. Franchisees in these states should still carefully review the franchise agreement and understand their obligations and potential liabilities.