Does Aerus's failure to invoke a right to terminate waive its ability to terminate the agreement later?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company's failure in any instance to invoke a right to terminate shall not waive or otherwise limit its ability or right to properly terminate this Agreement thereafter.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the company's failure to exercise its right to terminate the franchise agreement in one instance does not prevent it from properly terminating the agreement at a later time. This means that Aerus retains the right to terminate the agreement for any valid reason, even if it has previously overlooked or chosen not to act upon a similar violation.
This provision protects Aerus's interests by ensuring that it does not inadvertently waive its termination rights through leniency or delayed action. For a franchisee, this implies that consistent compliance with the franchise agreement is crucial, as past oversights by Aerus do not guarantee future forbearance. Franchisees should not assume that a previous failure by Aerus to enforce a specific term means that the term is no longer in effect or will not be enforced in the future.
This type of clause is relatively standard in franchise agreements, as it allows franchisors flexibility in managing their franchise systems while maintaining the ability to address serious or repeated violations. Franchisees should carefully review the termination provisions in their franchise agreement and seek legal counsel to fully understand their rights and obligations.