If an Aerus franchisee meets the conditions for renewal, is Aerus obligated to offer a renewal term?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| b. Renewal or extension of the term | Section 2 and Schedule 1 | If we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and you satisfy the requirements for renewal, you may renew for an additional one (1) year renewal term. |
| c. Requirements for franchisee to renew or extend | Section 2 | Provided we are then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located, you may renew subject to the following conditions: (1) you give us written notice of your desire to renew 30 days before expiration of the initial term; (2) there is no uncured default at the time of renewal; (3) you have achieved at least $10,000 in monthly Gross Sales during each of the prior six months; (4) you execute our then-current form of franchise agreement (which may contain materially different terms and conditions than your original Franchise Agreement); (5) you pay a $100 renewal fee; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
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, Aerus is not obligated to offer a renewal term even if a franchisee meets all the conditions for renewal. Aerus will only offer a renewal if they are offering new franchise rights for Aerus businesses in the state where the franchise is located. If Aerus is offering new franchises in the state and the franchisee satisfies the renewal requirements, the franchisee may renew for an additional one-year term.
The requirements for renewal include providing written notice of the desire to renew 30 days before the initial term expires, having no uncured defaults at the time of renewal, and achieving at least $10,000 in monthly Gross Sales during each of the prior six months. Additionally, the franchisee must execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement, pay a $100 renewal fee, and ensure that the franchisee, their principals, and their guarantors sign a general release in favor of Aerus and its affiliates.
This means that even if an Aerus franchisee meets all the listed requirements, Aerus retains the discretion to deny renewal if they are not actively offering new franchises in that state. This condition introduces a degree of uncertainty for franchisees as their renewal is not solely based on their performance and compliance but also on Aerus's strategic decisions regarding market expansion. Prospective franchisees should consider this factor and discuss Aerus's plans for their specific state to better understand the likelihood of renewal.