What is the deadline for an Aerus franchisee to provide written notice of their desire to renew their franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| a. Length of the term | Section 2 and Schedule 1 | As defined in Schedule 1. Initial term is equal to 1 year. |
| 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 |
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, an Aerus franchisee must provide written notice of their desire to renew their franchise 30 days before the expiration of the initial franchise term. The initial term for an Aerus franchise is one year, as defined in Schedule 1 of the franchise agreement. Therefore, the franchisee must notify Aerus in writing at least 30 days before the one-year term ends if they wish to renew.
To be eligible for renewal, Aerus must be offering new franchise rights for Aerus businesses in the state where the franchise is located. Additionally, the franchisee must meet several conditions. These conditions include ensuring there is no uncured default at the time of renewal, achieving at least $10,000 in monthly Gross Sales during each of the prior six months, executing Aerus's then-current form of franchise agreement, paying a $100 renewal fee, and signing a general release in favor of Aerus and its affiliates.
It is important to note that the renewal agreement may contain materially different terms and conditions than the original Franchise Agreement. This is a common practice in franchising, as franchisors update their agreements to reflect changes in the market, legal requirements, and their own business practices. Prospective franchisees should carefully review the renewal agreement to understand any changes and their potential impact on their business.