Are there any geographic limitations regarding the liquidated damages clause for Aerus franchises?

According to Aerus's 2025 Franchise Disclosure Document, the liquidated damages clause within the franchise agreement has specific geographic limitations. This clause does not apply to Aerus franchises operating in the states of Minnesota or North Dakota.

For prospective Aerus franchisees, this means that if their franchise is located in Minnesota or North Dakota, they will not be subject to the liquidated damages clause in the event of a breach or termination of the franchise agreement. Liquidated damages typically involve a pre-determined sum of money that a franchisee must pay to the franchisor to cover losses resulting from the franchisee's actions.

This geographic exception could be a significant factor for individuals considering opening an Aerus franchise in these states, as it potentially reduces the financial risks associated with the franchise agreement. Franchisees in other states should carefully review the terms of the liquidated damages clause to understand their potential financial obligations.