Does Section 19 of the Aerus agreement survive the expiration or termination of the agreement?

According to Aerus's 2025 Franchise Disclosure Document, Section 6 of the franchise agreement, which pertains to exclusivity and non-competition, survives the expiration or termination of the agreement. This means that even after the franchise agreement ends, certain restrictions on the franchisee's activities remain in effect.

Specifically, for one year after the agreement's expiration, termination, or transfer of interest, the franchisee and its operating principal are restricted from promoting or selling similar products or services, or engaging in competitive businesses within the Area of Responsibility or a ten-mile radius of any Aerus business. This restriction applies to businesses existing or under construction at the time of expiration or termination. The duration of this non-compete period can be extended if the franchisee breaches these covenants or if Aerus seeks to enforce the agreement.

This survival clause ensures that Aerus can protect its market and brand reputation even after a franchise relationship ends. Prospective franchisees should carefully consider these post-termination restrictions, as they could limit their business opportunities after leaving the Aerus system. Franchisees should seek legal counsel to fully understand the implications of these non-competition covenants.