Where in the Aerus Franchise Agreement are the requirements for renewal or extension outlined?
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 fee |
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 requirements for renewal or extension of the franchise term are detailed in Section 2 and Schedule 1 of the Franchise Agreement. The initial term for an Aerus franchise is one year, as defined in Schedule 1.
To renew the franchise for an additional one-year term, Aerus must be offering new franchise rights in the state where the franchise is located, and the franchisee must meet specific conditions. These conditions include providing written notice of the desire to renew 30 days before the initial term expires, ensuring there are no uncured defaults at the time of renewal, and achieving 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 is required, and the franchisee, their principals, and their guarantors must sign a general release in favor of Aerus and its affiliates.
Prospective franchisees should carefully review Section 2 and Schedule 1 of the Franchise Agreement to fully understand the renewal terms, as the conditions and terms can change, potentially impacting their ability to extend their franchise agreement.