What must an Aerus franchisee do regarding insurance upon execution of the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall, at its expense, procure upon execution of this Agreement, and shall maintain in full force and effect at all times during the Term, an insurance
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee must procure insurance upon the execution of the Franchise Agreement. The franchisee is responsible for maintaining this insurance throughout the entire term of the agreement. This means that from the moment the agreement is signed, the franchisee must obtain and keep active the required insurance coverage.
This requirement ensures that the Aerus business is protected against potential liabilities and risks. The specific types and amounts of coverage are likely detailed elsewhere in the FDD or in the Franchise Agreement itself. Franchisees need to carefully review these requirements to ensure they obtain the correct insurance policies.
Failing to secure and maintain the required insurance could result in a breach of the Franchise Agreement, potentially leading to termination of the franchise. Therefore, prospective Aerus franchisees should prioritize understanding and fulfilling the insurance obligations as soon as they sign the agreement.