Does the Aerus Franchise Agreement specify that certain breaches or defaults are considered material?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may be terminated prior to the natural expiration of the Term upon the occurrence of any of the following events (which are each deemed material breaches or defaults of this Agreement):
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the agreement specifies certain events that are considered material breaches or defaults. Specifically, the agreement may be terminated prior to its natural expiration if any of these events occur.
Additionally, if a Consignee defaults under any material contract with Aerus Franchising, or its affiliates, including the Franchise Agreement, and the default continues beyond any applicable cure period, it is considered an event of default. This allows Aerus to terminate the agreement.
These clauses are typical in franchise agreements, as they protect the franchisor's brand and system standards. Prospective Aerus franchisees should carefully review the specific events listed as material breaches or defaults and understand the potential consequences of such breaches, including termination of the franchise agreement.