Does the Aerus FDD specify if the renewal terms and conditions are the same as the initial franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| 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, the terms and conditions for renewal may not be the same as the initial franchise agreement. To renew an Aerus franchise, several conditions must be met.
Specifically, Aerus states that to renew, the franchisee must provide written notice 30 days before the initial term expires, have no uncured defaults at the time of renewal, and have achieved at least $10,000 in monthly Gross Sales during each of the prior six months. Additionally, the franchisee must execute Aerus's then-current form of franchise agreement, which Aerus notes may contain materially different terms and conditions than the original agreement. The franchisee must also pay a $100 renewal fee and ensure that they, their principals, and their guarantors sign a general release in favor of Aerus and its affiliates.
This indicates that Aerus franchisees should carefully review the renewal agreement when it is presented, as the terms could be significantly different from those in the original agreement. This is a fairly common practice in franchising, as franchisors often update their agreements to reflect changes in the market, regulations, or their business model. Prospective franchisees should be aware of this possibility and factor it into their long-term business planning.