Who determines permanent disability for an Aerus franchisee, and what happens if the franchisee refuses examination?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Upon the permanent disability of Franchisee (if a natural person) or any principal of Franchisee, Company may, at Company's sole option, require the interest of such individual to be transferred to a third party in accordance with the conditions described in this Addendum within six (6) months after notice to Franchisee. Permanent disability will be determined by a licensed practicing physician Company selects, upon examination of the person; or if the person refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Addendum.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the determination of permanent disability for a franchisee or any principal of the franchisee is made by a licensed practicing physician selected by Aerus. This determination is based on an examination of the individual in question.
If the franchisee or principal refuses to submit to the examination by the physician selected by Aerus, they will automatically be deemed permanently disabled as of the date of the refusal. This condition is specifically for the purpose of the terms outlined in Addendum C of the franchise agreement, which likely deals with the transfer of the franchise interest in the event of disability.
This clause is important for prospective Aerus franchisees to understand, as a refusal to undergo a medical examination, if requested by Aerus, has a specific and immediate consequence: it triggers a clause regarding the transfer of the franchise interest. Franchisees should consider the implications of this policy and seek clarification from Aerus regarding the circumstances under which such an examination might be required.