Under what conditions must an Aerus franchisee pay legal fees and indemnification?

According to Aerus's 2025 Franchise Disclosure Document, franchisees may be required to cover legal fees and provide indemnification under specific circumstances. The franchisee and their principals are responsible for paying all damages and expenses, including legal costs, that Aerus incurs due to the franchisee's breach of the Franchise Agreement. Additionally, franchisees must indemnify Aerus if their actions result in losses for the company. The amount for legal fees and indemnification is the actual loss, fees, and costs incurred, and payment is due on demand.

This means that if an Aerus franchisee violates the terms of their agreement or engages in activities that cause financial harm to Aerus, they will be held liable for the associated legal and other costs. This could include expenses related to lawsuits, investigations, or other legal proceedings. The obligation to indemnify Aerus means the franchisee must protect Aerus from financial losses resulting from the franchisee's actions.

For a prospective Aerus franchisee, this highlights the importance of fully understanding the Franchise Agreement and adhering to its terms. It also underscores the need to operate the franchise in a manner that does not expose Aerus to legal or financial risks. Failure to do so could result in significant and unpredictable expenses for legal fees and indemnification, in addition to other penalties for breaches of the agreement.