Can Aerus terminate an Aerus franchisee's access to the Customer Data, even during the term of the agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
m Sales Requirement set forth in Schedule 4 attached hereto. The existence, substance and process of any such system would be the sole and exclusive discretion of Company and may be implemented, revoked or modified (upon reasonable notice to Franchisee) at any time and from time to time.
E. Upon expiration or termination of this Agreement, Franchisee and Franchisee's principals shall:
(1) Immediately cease operation of the Franchised Business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose; promptly remove all signs, markings, or other writings and, immediately discontinue all advertising or publicity, that tend to indicate that Franchisee is a franchisee of Company or seller of Products; and immediately discontinue all advertising or publicity and take all actions necessary to comply with the foregoing, including instructing all publishers of any telephone directory or listing not to renew, repeat or insert any listing or advertisement using the word "Aerus", "Lux" or "Electrolux" or any other term or identifier associating Franchisee with Company.
(2) Send written notice to all Outlet Licensees and Sales Representatives with whom Franchisee has been dealing that any license granted to or agreement made with such is terminated, and that such Outlet Licensees and Sales Representatives must also take all other steps herein required of Franchisee under this Section.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the agreement specifies that upon termination of the franchise agreement, the franchisee must immediately cease using the Customer Data. Specifically, the franchisee must stop using the Customer Data for any reason or purpose. Additionally, the franchisee must deliver to Aerus all information, including Customer Data in physical or electronic formats, databases, and all other confidential information related to the operation of the franchised business.
This obligation extends to all Customer Data and related materials in the possession or control of the franchisee, including any such information held by Sales Representatives. This means that upon termination, Aerus franchisees lose all rights to utilize the customer database they may have built during the term of the agreement.
While the FDD excerpt makes it clear that access to Customer Data is terminated upon the expiration or termination of the agreement, it does not explicitly state whether Aerus can terminate a franchisee's access to this data during the term of the agreement. A prospective franchisee should seek clarification from Aerus regarding the specific circumstances under which access to Customer Data could be terminated during the term of the agreement.