Does the FDD specify any additional conditions beyond the written notice for Aerus franchise renewal?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| b. Renewal or extension of the term | Section 2 and Schedule 1 | If we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and you satisfy the requirements for renewal, you may renew for an additional one (1) year renewal term. |
| c. Requirements for franchisee to renew or extend | Section 2 | Provided we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located, you may renew subject to the following conditions: (1) you give us written notice of your desire to renew 30 days before expiration of the initial term; (2) there is no uncured default at the time of renewal; (3) you have achieved at least $10,000 in monthly Gross Sales during each of the prior six months; (4) you execute our then-current form of franchise agreement (which may contain materially different terms and conditions than your original Franchise Agreement); (5) you pay a $100 renewal fee; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–60)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee must meet several conditions to renew their franchise agreement beyond providing written notice. Aerus will only offer renewals if they are offering new franchises in the state where the franchise is located. Assuming that condition is met, the franchisee must provide written notice of their intent to renew 30 days before the initial term expires.
In addition to providing timely written notice, the franchisee must not be in default of the franchise agreement at the time of renewal. The franchisee must also have achieved at least $10,000 in monthly Gross Sales during each of the prior six months. Furthermore, the franchisee must execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement.
Finally, to renew the franchise agreement, the franchisee must pay a $100 renewal fee. The franchisee, their principals, and their guarantors must also sign a general release in favor of Aerus and its affiliates. These conditions collectively determine whether a franchisee is eligible to renew their Aerus franchise for an additional one-year term.