When is the $100 transfer fee for an Aerus franchise payable?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
signate in writing.
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- Term. Unless sooner terminated as provided herein, the duration of the initial term (the "Initial Term") and the renewal term (the "Renewal Term") will be as stated in Schedule 1 attached hereto, which, collectively, shall constitute the "Term" of this Agreement. Upon the expiration of the Initial Term, Franchisee may renew the franchise for one (1) Renewal Term, provided Company is then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and provided Franchisee meets all of the following conditions: (1) Franchisee has no uncured Event of Default under the Agreement at the time of renewal; (2) Franchisee gives Company written notice of Franchisee's desire to renew at least thirty (30) days prior to the end of the Initial Term; (3) Franchisee has achieved ten thousand dollars ($10,000) or more in Gross Sales each month during the prior six (6) months; (4) Franchisee executes Company's then-current form of franchise agreement, which, upon execution, will supersede this Agreement and which may differ from the terms of this Agreement, including, without limitation, the payment of higher or additional fees and revised Minimum Sales Requirements; (5) Franchisee pays Company a renewal fee of one hundred dollars ($100) (in lie
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
The 2025 Aerus Franchise Disclosure Document states that a $100 fee is associated with the renewal of a franchise term, not the transfer of a franchise. Specifically, if a franchisee wants to renew their Aerus franchise for an additional term, they must pay Aerus a renewal fee of $100. This fee is paid in lieu of paying an initial franchise fee.
To be eligible for renewal, the franchisee must meet several conditions. They cannot have any uncured events of default at the time of renewal. The franchisee must provide written notice of their intent to renew at least 30 days before the end of the initial term. Additionally, the franchisee must have achieved gross sales of $10,000 or more each month for the six months before renewal.
Furthermore, the franchisee must execute Aerus's then-current form of franchise agreement, which may have different terms than the original agreement, including higher fees or revised sales requirements. Finally, the franchisee and their principals must execute a general release of any claims against Aerus and its affiliates.