Does Aerus have the right to control litigation arising from alleged infringement of Aerus's patents, copyright, and proprietary information?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us immediately by telephone, and thereafter in writing, of any apparent infringement of or challenge to your use of any patents, copyrighted material or proprietary information, or of any claim by any person of any rights therein. We will have the right to take such action as we deem appropriate in connection with the foregoing, including the right to control any settlement, litigation or proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to any of the patents, copyright and proprietary information. You must execute any and all instruments and documents, render such assistance, and do such acts or things as may, in our reasonable opinion, be necessary or advisable to protect and maintain our or our affiliate's interests in any litigation or other proceeding or to otherwise protect and maintain our, our affiliates or any other interested party's interest in the patents, trademarks or proprietary information.
Source: Item 14 — Patents, Copyrights, and Proprietary Information (FDD pages 51–53)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus retains significant control over any litigation related to its patents, copyrights, and proprietary information. Specifically, if a franchisee becomes aware of any potential infringement or challenge to the use of Aerus's intellectual property, they are obligated to notify Aerus immediately.
Aerus then has the right to take any action it deems appropriate, including controlling any settlement, litigation, or proceeding that arises from the alleged infringement, challenge, or claim. This means that even if a franchisee is directly involved in a legal dispute concerning Aerus's intellectual property, Aerus has the authority to dictate the legal strategy and make decisions regarding settlement.
Furthermore, the franchisee is required to assist Aerus in protecting its interests by executing documents and providing assistance as needed. This obligation extends to protecting the interests of Aerus's affiliates and other interested parties. This clause ensures that Aerus can comprehensively defend its intellectual property rights, but it also places a responsibility on the franchisee to cooperate fully in any legal proceedings, potentially incurring costs or expending time in support of Aerus's legal efforts.
This level of control is fairly common in franchising, as franchisors need to protect their brand and system standards. However, prospective Aerus franchisees should carefully consider the implications of this clause, particularly the potential for being involved in legal disputes and the requirement to assist Aerus in these matters.