Can the Aerus Franchise Agreement be terminated before the natural expiration of its term?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company will identify any modifications or improvements to the premises of the Franchised Business, if any, which Franchisee shall make, at Franchisee's expense, prior to the Opening Date, or within such time period ending after the Opening Date as Company may designate in writing.
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- Term. Unless sooner terminated as provided herein, the duration of the initial term (the "Initial Term") and the renewal term (the "Renewal Term") will be as stated in Schedule 1 attached hereto, which, collectively, shall constitute the "Term" of this Agreement. Upon the expiration of the Initial Term, Franchisee may renew the franchise for one (1) Renewal Term, provided Company is then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and provided Franchisee meets all of the following conditions: (1) Franchisee has no uncured Event of Default under the Agreement at the time of renewal; (2) Franchisee gives Company written notice of Franchisee's desire to renew at least thirty (30) days prior to the end of the Initial Term; (3) Franchisee has achieved ten thousand dollars ($10,000) or more in Gross Sales each month during the prior six (6) months; (4) Franchisee executes Company's then-current form of franchise agreement, which, upon execution, will supersede this Agreement and which may differ from the terms of this Agreement, including, without limitation, the payment of higher or additional fees and revised Minimum Sales Requirements; (5) Franchisee pays Company a renewal fee of one hundred dollars ($100) (in lieu of paying an initial franchisee fee); and (6) Franchisee and its principals and guarantors execute a general release, in a form satisfactory to Company, of any and all claims against Company and Company's current and former Affiliates, officers, directors, owners, employees, and agents. In the event the parties continue to perform under this Agreement after expirat
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the franchise agreement can be terminated before the end of its term. The document states, "Unless sooner terminated as provided herein, the duration of the initial term...will be as stated in Schedule 1 attached hereto..." This indicates that there are circumstances under which the agreement can be terminated earlier than the initially agreed-upon term.
Additionally, the FDD mentions that Aerus may implement a system to enforce the franchise agreement's terms, which could involve penalties or fines for violations. While the primary goal of this system isn't necessarily immediate termination, it does provide Aerus with tools to address breaches of contract, which could ultimately lead to termination if the franchisee fails to comply. This system can include compliance audits and "secret shopper" practices.
Furthermore, the addendum for Beyond Products states that the addendum will terminate on the earlier of either the termination or expiration of the Franchise Agreement or notice from Aerus of the franchisee's violation of the terms and conditions of the addendum or the Franchise Agreement. This clause reinforces the possibility of early termination if the franchisee violates the terms of the agreement or the addendum.