Does the Aerus Franchise Agreement require franchisee to obtain consent before transferring any interest in the assets of the Franchised Business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD 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. |
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, franchisees must obtain the franchisor's consent before transferring any interest in the assets of their franchised business. The FDD specifies that this requirement is detailed in Addendum C of the franchise agreement. This stipulation also applies to transferring any interest in the Franchise Agreement itself, or any ownership interest in the franchisee entity if the franchisee is not a natural person.
This provision is a standard practice in franchising, allowing Aerus to maintain control over who enters their system and ensuring that new franchisees meet their standards. It prevents franchisees from unilaterally transferring their business to someone who may not be qualified or aligned with the Aerus brand.
Furthermore, the FDD outlines conditions for Aerus's approval of a transfer, including the payment of a transfer fee. The transferee is also required to sign the current Franchise Agreement or a written agreement assuming all of the franchisee's obligations. These conditions protect Aerus's interests and ensure a smooth transition when a franchise changes hands.
Prospective Aerus franchisees should carefully review Addendum C of the Franchise Agreement to fully understand the requirements and conditions for transferring their franchise. They should also be prepared to pay a transfer fee and ensure that any potential transferee meets Aerus's qualifications and is willing to assume all obligations under the Franchise Agreement.