What is the duration of the initial term for an Aerus franchise, as stated in Schedule 1?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company will identify any modifications or improvements to the premises of the Franchised Business, if any, which Franchisee shall make, at Franchisee's expense, prior to the Opening Date, or within such time period ending after the Opening Date as Company may designate 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 lieu of paying an initial franchisee fee); and (6) Franchisee and its principals and guarantors execute a general release, in a form satisfactory to Company, of any and all claims against Company and Company's current and former Affiliates, officers, directors, owners, employees, and agents. In the event the parties continue to perform under this Agreement after expirat
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the length of the initial franchise term and any renewal term will be detailed in Schedule 1 of the franchise agreement. The total duration of the agreement, referred to as the "Term," is the sum of the initial term and any subsequent renewal term.
Upon completion of the initial term, an Aerus franchisee has the option to renew the franchise for one additional term. However, this renewal is contingent upon several conditions. First, Aerus must be offering new franchises in the state where the franchise is located at the time of renewal. Second, the franchisee must not be in default of the franchise agreement. Third, the franchisee must provide written notice of their intent to renew at least 30 days before the end of the initial term.
Additional conditions for renewal include achieving $10,000 or more in gross sales each month for the six months prior to renewal, executing Aerus's current franchise agreement (which may have different terms and fees), paying a renewal fee of $100, and releasing Aerus from any claims. If the franchisee continues to operate the business after the initial or renewal term without a new agreement, the agreement extends on a month-to-month basis, which can be terminated by either party with 30 days' written notice.