What fee must an Aerus franchisee pay when requesting a transfer of the franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will pay, at the time of the request for Transfer, a Transfer Fee as described in Schedule 3 to reimburse Company for Company's reasonable expenses associated with reviewing the application to Transfer.
The transferee will (as Company directs): (i) execute, for a term ending on the expiration date of this Agreement and with such renewal term as may be provided by this Agreement, the standard form franchise agreement then being offered to new system franchisees and other ancillary agreements as Company may require for the Franchised Business, which agreements will supersede this Agreement and Attachments in all respects and the terms of which agreements may differ from the terms of this Agreement, provided, however, that the transferee will not be required to pay any Initial Franchise Fee; or (ii) enter into a written agreement, in a form satisfactory to Company, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the Transfer, all obligations, covenants and agreements contained in this Agreement and Attachments; and, if transferee is a business entity, transferee's shareholders, partners, members or other investors, as applicable, will execute such agreement as transferee's principals and guarantee the performance of all such obligations, covenants and agreements; and transferee will provide to Company any other evidence deemed necessary by Company to determine that the terms of the agreements described above have been or will be satisfied and are true and correct on the date of Transfer; the transferor will remain liable for all of the obligations to Company in connection with the Franchised Business incurred prior to the effective date of the Transfer and will execute any and all instruments Company reasonably requests to evidence such liability;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, a franchisee must pay a Transfer Fee at the time they request a transfer of their franchise. This fee is intended to reimburse Aerus for the reasonable expenses it incurs while reviewing the transfer application. The specific amount of this Transfer Fee is detailed in Schedule 3 of the franchise agreement.
In addition to the Transfer Fee, the transferee, or the party acquiring the franchise, will be required to fulfill certain obligations. Aerus may direct the transferee to execute the standard form franchise agreement then being offered to new franchisees, which will supersede the existing agreement. Alternatively, the transferee may enter into a written agreement assuming full liability for all obligations outlined in the original franchise agreement. If the transferee is a business entity, its principals may also be required to guarantee the performance of these obligations.
The original franchisee, or transferor, remains liable for all obligations to Aerus incurred before the transfer's effective date and must execute any documents reasonably requested by Aerus to evidence this liability. These conditions ensure a smooth transition and protect Aerus's interests during the transfer process. Prospective franchisees should carefully review Schedule 3 to understand the exact amount of the Transfer Fee and be prepared to meet all requirements associated with transferring the franchise.