Does the non-compete clause in the Aerus franchise agreement survive the expiration or termination of the agreement?

According to Aerus's 2025 Franchise Disclosure Document, the non-compete clause does indeed survive the expiration or termination of the franchise agreement. Specifically, for a period of one year after the agreement's expiration, termination, or transfer of the franchisee's interest, the franchisee and their Operating Principal are restricted from certain competitive activities.

This restriction applies within the franchisee's Area of Responsibility or within a 10-mile radius of any Aerus business that is either in existence or under construction at the time of expiration or termination. The prohibited activities include promoting or selling products or services similar to Aerus's products, or engaging in any business that competes with the Aerus system or its products, including any future businesses or systems developed by Aerus or its affiliates.

Furthermore, the agreement specifies that the one-year non-compete period can be extended if the franchisee breaches the non-compete covenants or if Aerus has to take legal action to enforce the agreement. This means that any violation of the non-compete terms could result in a longer period of restriction, potentially impacting the franchisee's ability to engage in similar business ventures after leaving the Aerus franchise system. This extended restriction is designed to protect Aerus's interests and prevent former franchisees from unfairly competing using knowledge gained during their time with the company.