In the event of a franchisee's death, what happens if no personal representative is designated for the Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. 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, in the event of the death of a franchisee, the handling of the franchise interest depends on whether a personal representative is appointed for the deceased's estate. If a personal representative (such as an executor or administrator) is appointed, that representative is responsible for transferring the franchise interest to a third party approved by Aerus within twelve months of the franchisee's death. This ensures that the franchise continues to be operated by someone acceptable to Aerus and maintains the brand's standards.
However, if no personal representative is designated or no probate proceedings are initiated, the responsibility shifts to the distributee of the deceased's interest. This distributee must also be approved by Aerus. If Aerus does not consent to the distributee taking over the franchise, the distributee is then obligated to transfer the franchise interest to a third party approved by Aerus within the same twelve-month period. This provision ensures that even in the absence of a formal estate process, the franchise interest is transferred to someone who meets Aerus's standards.
This requirement protects Aerus by ensuring that the franchise is operated by someone they approve, maintaining consistency and quality within the franchise system. For a prospective franchisee, this means understanding the importance of estate planning and having a clear succession plan for the business in case of death or disability. It also highlights the need to ensure that potential successors are aware of and willing to comply with Aerus's requirements for franchise ownership.