What happens to an Aerus franchise upon the death of the franchisee or a principal of the franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Upon Franchisee (if a natural person) or any Franchisee's principal's death, the executor, administrator or other personal representative of the deceased individual must Transfer such interest to a third party consented to by Company within twelve (12) months after the death. If no personal representative is designated or appointed or no probate proceedings are instituted with respect to the estate of the deceased individual, then the distributee of such interest must be consented to by Company. If the distributee is not consented to by Company, then the distributee must Transfer such interest to a third party consented to by Company within twelve (12) months after the death of the deceased individual.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if the franchisee or a principal of the franchisee dies, their interest must be transferred to a third party approved by Aerus within twelve months of the death. This responsibility falls to the executor, administrator, or personal representative of the deceased.
If no personal representative is appointed or probate proceedings are initiated, the responsibility shifts to the distributee of the interest, who must also be approved by Aerus. Should Aerus not approve the distributee, the distributee is then obligated to transfer the interest to a third party approved by Aerus, again within twelve months of the death.
This clause ensures that Aerus maintains control over who operates its franchises, even in the event of death. It places a time-sensitive obligation on the deceased's estate or beneficiaries to find a suitable, Aerus-approved buyer or transferee. Prospective franchisees should consider the implications of this requirement for their estate planning and business succession strategies.