What happens to the Aerus franchise agreement if there is a change in ownership or control of the franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
B. If a business entity:
- (1) Franchisee is duly organized and validly existing under the law of the jurisdiction of its formation and is duly qualified and authorized to do business in each jurisdiction in which the Franchised Business will operate;
- (2) Franchisee's charter documents currently provide and will at all future times provide that Franchisee's activities shall be confined exclusively to the ownership and operation of an Aerus Business, unless Company otherwise consents in writing;
- (3) Franchisee has provided to Company for review certified copies of its articles of organization or other charter documents, any amendments thereto, resolutions of its Board of Directors or Board of Managers, or consent of its limited partners, authorizing and consenting to entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity of the entity, and any other documents as Company may reasonably require prior to the execution of this Agreement;
- (4) The individual executing this Agreement is duly authorized to so execute, has appropriate authority to bind Franchisee as provided hereunder, and is an active, full-time participant in the daily operations of the Franchised Business; and
- (5) Franchisee's execution of this Agreement, and entry into the business arrangement contemplated hereby, do not violate any prior existing obligation, any law or any of the contractual or business relationship of Franchisee or any of Franchisee's principals.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, if the franchisee is a business entity, there are specific requirements regarding changes in ownership or control. The franchisee's charter documents must always state that its activities are limited to owning and operating an Aerus Business, unless Aerus gives written consent otherwise.
Prior to the execution of the franchise agreement, the franchisee must provide Aerus with certified copies of its organizational documents, any amendments, resolutions from its board of directors or managers, consent from limited partners, any agreements restricting equity sales or transfers, and any other documents Aerus reasonably requires. The individual signing the agreement must be authorized to do so, have the authority to bind the franchisee, and be actively involved full-time in the daily operations of the Aerus Business.
Furthermore, the franchisee's execution of the agreement and entry into the business arrangement must not violate any existing obligations, laws, or contractual or business relationships of the franchisee or its principals. These stipulations ensure that Aerus maintains control over who operates its franchises and that any changes in ownership or control are vetted and approved by the company, safeguarding the brand and its standards.