Does the Aerus FDD state whether the renewal term begins immediately after the initial term?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ad these provisions in the agreements attached to this disclosure document.**
THE FRANCHISE RELATIONSHIP
| Category | Section in Agreement | Summary |
|---|---|---|
| a. Length of the term | Section 2 and Schedule 1 | As defined in Schedule 1. Initial term is equal to 1 year. |
| 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 f |
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 initial franchise term is for one year, and a renewal term is for an additional one year. To renew the Aerus franchise, several conditions must be met. The franchisee must provide written notice of their intent to renew 30 days before the initial term expires. At the time of renewal, the franchisee cannot have any uncured defaults. The franchisee must 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 may contain materially different terms and conditions than the original agreement. A $100 renewal fee must be paid, and the franchisee, their principals, and their guarantors must sign a general release in favor of Aerus and its affiliates.
The Aerus FDD does not explicitly state that the renewal term begins immediately after the initial term, but it can be inferred that the renewal term would begin immediately after the initial term, assuming all conditions are met and the renewal is approved.