Will the non-compete period for an Aerus franchise be extended if I breach the non-compete covenants?

According to Aerus's 2025 Franchise Disclosure Document, the non-compete period can be extended if a franchisee breaches the non-compete covenants. Specifically, the standard one-year non-compete period following the termination or expiration of the franchise agreement will be extended, or "tolled," for the length of time that the franchisee is in breach of the non-compete agreement. It will also be extended for any period during which Aerus is attempting to enforce the non-compete agreement.

This means that if an Aerus franchisee violates the non-compete terms, the one-year clock does not run during the period of the breach or while Aerus is pursuing legal action to enforce the agreement. For example, if a franchisee breaches the non-compete agreement for three months, the non-compete period could effectively become one year and three months. This provision is designed to protect Aerus's interests and ensure franchisees comply with the non-compete obligations.

This type of clause is relatively common in franchise agreements. It is crucial for prospective Aerus franchisees to understand the scope and duration of the non-compete agreement, as well as the potential consequences of breaching it. Franchisees should be aware that any violation could lead to a prolonged period during which they are restricted from engaging in competitive activities, in addition to potential legal action from Aerus.