If Aerus elects to cure a lease default, how long does Aerus have to cure the default?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of Tenant's default under the terms of the Lease, Company may, but is not required to, cure the default and may assume the lease in Company's name.
If Company elects to cure the default and assume the Lease, Company shall, within thirty (30) days after Company receives notice of the default, notify Landlord of its intent to cure such default and to assume the Lease.
Company shall cure the default within thirty (30) days of such election or, if the default cannot be reasonably cured within such thirty (30) day period, then Company shall commence and proceed to cure the default within such time as is reasonably necessary to cure the default.
If Company elects to assume the Lease, Landlord agrees to recognize Company as the Tenant under the Lease, and Tenant shall no longer have any rights thereunder.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a franchisee defaults on their lease, Aerus has the option, but not the obligation, to cure the default and assume the lease. To do so, Aerus must notify the landlord of their intent to cure the default and assume the lease within 30 days of receiving notice of the default.
After electing to cure the default, Aerus has 30 days to complete the cure. However, if the default cannot be reasonably cured within this 30-day period, Aerus must commence and proceed to cure the default within a timeframe that is reasonably necessary to cure it.
This clause in the lease agreement provides Aerus with the flexibility to step in and maintain control of the business location if a franchisee is struggling. For a prospective franchisee, this could be seen as a safety net, knowing that Aerus has a vested interest in keeping the location operational. However, it's important to note that Aerus is not obligated to cure the default, and the decision to do so is at their discretion.