Does the ability to renew an Aerus franchise depend on Aerus offering new franchises in the franchisee's state?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| b. Renewal or extension of the term | Section 2 and Schedule 1 | If we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and you satisfy the requirements for renewal, you may renew for an additional one (1) year renewal term. |
| c. Requirements for franchisee to renew or extend | Section 2 | Provided we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located, you may renew subject to the following conditions: (1) you give us written notice of your desire to renew 30 days before expiration of the initial term; (2) there is no uncured default at the time of renewal; (3) you have achieved at least $10,000 in monthly Gross Sales during each of the prior six months; (4) you execute our then-current form of franchise agreement (which may contain materially different terms and conditions than your original Franchise Agreement); (5) you pay a $100 renewal fee; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–60)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the ability to renew your franchise is contingent on Aerus offering new franchises in your state. Specifically, if Aerus is offering new franchise rights for Aerus businesses in the state where your franchise is located, you are eligible to renew your franchise for an additional one-year term, provided you meet all other renewal requirements. This condition means that Aerus's strategic decisions regarding franchise expansion directly impact your renewal eligibility.
To renew your Aerus franchise, you must also satisfy several conditions. You need to provide written notice of your intent to renew 30 days before the expiration of your current term. Additionally, you must not have any outstanding defaults at the time of renewal. Achieving a minimum of $10,000 in monthly Gross Sales for each of the six months before renewal is also mandatory.
Furthermore, as part of the renewal process, you are required to execute Aerus's then-current franchise agreement, which may include terms and conditions that differ significantly from your original agreement. You also need to pay a $100 renewal fee. Finally, you, your principals, and any guarantors must sign a general release in favor of Aerus and its affiliates. These stipulations ensure that Aerus can update its franchise terms and protect its interests during the renewal period.
The renewal conditions highlight the importance of maintaining a strong business performance and a good relationship with Aerus. The potential for altered terms in the renewed franchise agreement also underscores the need for careful review and legal consultation before committing to a renewal. Prospective franchisees should consider these factors when evaluating the long-term viability of an Aerus franchise.