Under what conditions can Aerus terminate a franchisee's access to and right to use the Customer Data?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
D. The rights in, and license of, the Customer Data granted hereunder are non-exclusive and, in addition to those rights described elsewhere in this Agreement, Company and Company's Affiliates retain all rights concerning the Customer Data not expressively granted in this Agreement, including, without limitation, the rights to: (1) terminate Franchisee's access to and right to use some or all of the Customer Data; (2) grant other licenses for use of all or any portion of the Customer Data, including any portion relevant to the Area of Responsibility; (3) develop systems and procedures to capture, store, manipulate, organize, sort and report the Customer Data and to require Franchisee to implement and utilize such systems and procedures; and (4) use the Customer Data in order to engage, directly or indirectly, at wholesale, retail or otherwise, in the distribution or sales of products and services, including, the Products.
6. Exclusivity and Non-Competition.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus retains the right to terminate a franchisee's access to and right to use the Customer Data. Aerus also retains the rights to grant other licenses for the use of the Customer Data, develop systems and procedures to manage the Customer Data, and use the Customer Data to engage in the distribution or sales of products and services.
Aerus franchisees must comply with consumer and data privacy laws, such as the Fair and Accurate Credit Transactions Act ("FACTA"), and the Payment Card Industry Data Security Standards ("PCI DSS"). Franchisees are also expected to upgrade their computer systems periodically to ensure compliance with all applicable laws, regulations, and guidelines. Failure to comply with these requirements constitutes a material default under the Franchise Agreement and can lead to termination.
Upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease using the Customer Data. This includes ceasing operation of the franchised business and any use of the Marks, Software and Administration Systems or the Customer Data for any reason or purpose. Franchisees must also deliver to Aerus all information, including Customer Data in physical or electronic formats, and all other Confidential Information relating to the operation of the Franchised Business.