In the event of the death of an Aerus franchisee, how long does the executor have to transfer the interest?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisee (if a natural person) or any Franchisee's principal's death, the executor, administrator or other personal representative of the deceased individual must Transfer such interest to a third party consented to by Company within twelve (12) months after the death. If no personal representative is designated or appointed or no probate proceedings are instituted with respect to the estate of the deceased individual, then the distributee of such interest must be consented to by Company. If the distributee is not consented to by Company, then the distributee must Transfer such interest to a third party consented to by Company within twelve (12) months after the death of the deceased individual.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a franchisee or their principal dies, their executor, administrator, or other personal representative has twelve months to transfer the franchise interest to a third party approved by Aerus. If there is no designated personal representative or probate proceedings, the distributee of the interest must be approved by Aerus. If Aerus does not approve of the distributee, that distributee then has twelve months to transfer the interest to a third party approved by Aerus.
This requirement ensures that Aerus maintains control over who operates its franchises, even in the event of a franchisee's death. The twelve-month period provides some flexibility for the deceased's estate to handle the transfer, but it also imposes a deadline to prevent prolonged uncertainty about the franchise's future.
It is important to note that any transfer of the franchise interest, whether by the executor or the distributee, is subject to Aerus's approval. This means that the proposed transferee must meet Aerus's standards for franchisees, which may include financial qualifications, business experience, and other criteria. The estate may also incur a transfer fee. Prospective franchisees should consider these factors and discuss with Aerus what the company's specific requirements are for approving a transferee in the event of death.