What state's laws does the Aerus franchise agreement require to be applied?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
10 This liquidated damages clause does not apply to franchises in the State of Minnesota or the State of North Dakota.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the franchise agreement does not specify one particular state's laws that govern the agreement, but it does state that the liquidated damages clause within the agreement does not apply to franchises in the states of Minnesota or North Dakota.
This means that while the agreement is generally applicable, certain provisions, specifically those related to liquidated damages, will not be enforced in Minnesota or North Dakota. A prospective franchisee in these states would not be subject to the standard liquidated damages outlined in the agreement.
For franchisees outside of Minnesota and North Dakota, the liquidated damages clause would be in full effect, so it is important to understand those terms. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement, especially concerning which state laws generally govern the contract and how they might be affected by this clause.