If an Aerus franchisee meets all renewal requirements, is Aerus obligated to grant the renewal?
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, the company is not obligated to grant a renewal even if the franchisee meets all requirements. Aerus will only consider 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, a franchisee can renew for an additional one-year term if they meet specific conditions.
The conditions for renewal include providing written notice 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 for 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 than the original agreement. They must also pay a $100 renewal fee, and the franchisee, their principals, and guarantors must sign a general release in favor of Aerus and its affiliates.
This renewal process is fairly typical in franchising, although the one-year renewal term is shorter than many franchises that offer 5-10 year renewal terms. The fact that Aerus's renewal agreement may contain "materially different terms and conditions" than the original agreement is also a common practice. This means that a franchisee may need to agree to less favorable terms to continue operating under the Aerus brand. A prospective franchisee should carefully consider these conditions and the potential for altered terms before investing in an Aerus franchise.