Where can I find the specific provisions regarding renewal, termination, transfer, and dispute resolution for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The table lists important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.
| Category | Section in Agreement | Summary |
|---|---|---|
| j. Assignment of | Section 20 | No restriction on right to transfer |
| contract by Franchisor | ||
| k. "Transfer" by | Section 20 and | Includes sale, assignment, grant, conveyance, pledge, |
| Franchisee-defined | Addendums A and C | hypothecation or encumbrance. |
| l. Franchisor approval of transfer by Franchisee | Addendum C | You must obtain our consent before transferring any interest in the Franchise Agreement, in the assets of the Franchised Business, or any ownership interest in the franchisee (if the franchisee is not a natural person). |
| m. Conditions for Franchisor approval of transfer | Addendum C | Conditions include, among others: You must pay a transfer fee. The transferee also must sign current Franchise Agreement or enter into written agreement assuming all of your obligations. |
| n. Franchisor's right of | No provision | Not applicable. |
| first refusal to acquire | ||
| Franchisee's business | ||
| o. Franchisor's option to purchase Franchisee's business | Section 15.F | Upon expiration or termination of your Franchise Agreement, you may be required to do any one or more of the following, at our option: (1) if you operated the Franchised Business premises under a le |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 56–60)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, Item 17 and the franchise agreement outline the provisions for renewal, termination, transfer, and dispute resolution. The FDD indicates that a table lists important provisions of the franchise and related agreements, and prospective franchisees should read these provisions in the agreements attached to the disclosure document.
Regarding transfer of the franchise, the FDD specifies in Section 20 that there is no restriction on Aerus's right to transfer the contract. However, for the franchisee, 'transfer' includes sale, assignment, grant, conveyance, pledge, hypothecation, or encumbrance, as detailed in Section 20 and Addendums A and C. The franchisee must obtain Aerus's consent before transferring any interest in the Franchise Agreement, the assets of the Franchised Business, or any ownership interest in the franchisee (if the franchisee is not a natural person), as outlined in Addendum C.
Conditions for Aerus's approval of a transfer, as detailed in Addendum C, include the franchisee paying a transfer fee. Additionally, the transferee must sign the current Franchise Agreement or enter into a written agreement assuming all of the franchisee's obligations. Aerus does not have a right of first refusal to acquire the franchisee's business. However, according to Section 15.F, upon expiration or termination of the Franchise Agreement, Aerus may require the franchisee to cease operating the Franchised Business premises under a lease, sublease, or license agreement, among other options.