What happens if an Aerus franchisee attempts a Transfer in violation of the Franchise Agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| or procedure adopted by us concerning the Marks, the | ||
| Software Systems, or the Customer Data, or otherwise | ||
| infringe on our rights in or to the Marks, the Software | ||
| Systems, or the Customer Data; (b) without our prior | ||
| written approval, you sell more than ten percent (10%) of | ||
| the Products in any calendar quarter to persons outside of | ||
| the Area of Responsibility; (c) you sell any Product to any | ||
| person or entity other than an Approved Customer; | ||
| (d) you violate any obligation of confidentiality or | ||
| non-disclosure included in the Agreement; (e) you or any | ||
| of your principals attempts a Transfer in violation of the | ||
| Franchise Agreement |
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, if a franchisee or any of their principals attempts a transfer of the franchise in violation of the Franchise Agreement, it constitutes a cause for termination of the agreement.
Specifically, under Section 15.B of the Franchise Agreement, each obligation is considered material and essential, meaning that breaching the agreement can lead to termination. The FDD outlines several curable defaults, and while it doesn't explicitly state that an unauthorized transfer is curable, it does list other violations that are curable with a specified notice period.
Prospective Aerus franchisees should carefully review the transfer provisions in the Franchise Agreement and Addendum C to fully understand the requirements and restrictions. It would be prudent to seek clarification from Aerus regarding whether an attempted unauthorized transfer is a curable default and what the specific consequences would be.