Under what condition can Aerus require a franchisee to cease a behavior that was previously not in violation of restrictions?

According to Aerus's 2025 Franchise Disclosure Document, Aerus may require a franchisee to stop a behavior that was previously not a violation if Aerus modifies, expands, or supplements the System, or modifies or adds to the Products offered. If Aerus determines, in its reasonable discretion, that a franchisee's behavior now violates the exclusivity and non-competition section of the agreement due to these changes, Aerus can demand the franchisee cease such behavior. This demand must be made in writing.

This condition is related to Section 6.A of the franchise agreement, which outlines exclusivity and non-competition terms during the term of the agreement. It states that franchisees cannot promote or sell similar or substitute products, participate in competitive businesses, or use customer data outside the franchised business. The approved location can only be used for the Aerus business.

This clause gives Aerus flexibility to adapt its business model and product offerings, but it also introduces a degree of uncertainty for franchisees. A franchisee may be engaged in a practice that is initially permissible but later becomes prohibited due to changes implemented by Aerus. Franchisees need to stay informed about any modifications or additions to the Aerus system or product line to ensure compliance and avoid potential conflicts.

It is important for prospective franchisees to understand that Aerus retains the right to evolve its business and product offerings, and these changes may impact the scope of permissible activities for franchisees. Franchisees should seek clarification from Aerus regarding the types of changes that could trigger this clause and how Aerus determines whether a franchisee's behavior violates the exclusivity and non-competition section.