What is the cure period for an Aerus franchisee's failure to pay monies owed to Aerus or its affiliates?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Default in Material Agreement.
Debtor shall be declared to be in default under any material contract, agreement or instrument to which Debtor is a party or by which Debtor or its property is bound including, without limitation, the Note, the Asset Purchase Agreement, the Franchise Agreement, and any other documents or instruments evidencing or securing any obligation of Debtor to Secured Party, Aerus LLC, or their affiliates under or in connection with this Security Agreement or any of the foregoing documents and instruments and such default shall continue for thirty (30) days after receipt of notice of such failure from the other party to the said contract, agreement or instrument.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee has a 30-day cure period after receiving notice of failure to pay monies owed to Aerus or its affiliates. Specifically, this cure period applies if the franchisee is declared to be in default under any material contract, agreement, or instrument, including the Franchise Agreement, and this default continues for 30 days after notice of such failure from the other party.
This means that if an Aerus franchisee fails to meet their financial obligations to Aerus or its affiliates, they will receive a notice of default. The franchisee then has 30 days to rectify the situation, such as by making the overdue payments. If the franchisee does not cure the default within this 30-day period, Aerus may take further action, potentially including termination of the franchise agreement.
It is important for prospective Aerus franchisees to understand this cure period, as it provides a limited window to correct payment defaults and avoid more severe consequences. Franchisees should ensure they have systems in place to manage their financial obligations and address any payment issues promptly to maintain compliance with the franchise agreement.