For Aerus franchises, what is the most common reason for an outlet to cease operations, based on the data from 2022-2024?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Canada) | 2022 | 3 | | | 2023 | 5 | | | 2024 | 5 | TABLE 3 STATUS OF FRANCHISED OUTLETS FOR YEARS 2022 TO 2024 (UNITED STATES)
| State | Year | Outlets at Start of Year | Outlets Opened | Terminations | Non-Rene wals | Required by Franchisor | Ceased Operations for Other Reasons | Outlets at End of Year |
|---|---|---|---|---|---|---|---|---|
| Alabama | 2022 | 5 | 0 | 0 | 0 | 0 | 0 | 5 |
Source: Item 20 — Outlets and Franchisee Information (FDD pages 61–73)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the most common reason for franchised outlets to cease operations between 2022 and 2024 is due to non-renewals. Looking at the data provided, in 2024, 30 outlets closed due to non-renewal, while only 1 ceased operations for other reasons.
In 2022, 11 Aerus franchises were terminated, 3 were due to non-renewals, 2 were required by the franchisor, and 9 ceased operations for other reasons. In 2023, 5 franchises were terminated, and 3 ceased operations for other reasons.
These figures indicate that non-renewal of franchise agreements is the primary reason for outlets ceasing operations in 2024. While terminations and other reasons contributed to closures in previous years, non-renewals were the most significant factor in 2024. A prospective franchisee should investigate the reasons for non-renewals and understand the factors that contribute to this outcome.