Can an Aerus franchisee renew if they are not in good standing with Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| 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; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
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, an Aerus franchisee's ability to renew their franchise agreement is contingent upon meeting specific requirements, including being in good standing with the company. The initial term for an Aerus franchise is one year, and renewal is possible for an additional one-year term if Aerus is offering new franchises in the same state.
To be eligible for renewal, the franchisee must provide written notice of their intent to renew 30 days before the expiration of the initial term. Critically, there must be no uncured default at the time of renewal, meaning the franchisee must be in good standing. Additionally, the franchisee needs to have achieved at least $10,000 in monthly Gross Sales during each of the prior six months.
Furthermore, 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, along with their principals and guarantors, must sign a general release in favor of Aerus and its affiliates. Therefore, if an Aerus franchisee has any outstanding defaults or breaches of the franchise agreement at the time of renewal, they will not be eligible to renew their franchise.