If the lease is assigned to Aerus, is Aerus responsible for the franchisee's past due rent?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Upon expiration or termination of this Agreement, Franchisee shall do any one or more of the following, at Company's option:
- (1) If Franchisee operates the Franchised Business premises under a lease with a third party or, with respect to any lease for equipment used in the operation of the Franchised Business, assign to Company any interest which Franchisee has in any lease or sublease for the Approved Location or any equipment related to the Franchised Business.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
The 2025 Aerus Franchise Disclosure Document outlines procedures upon the expiration or termination of the franchise agreement. Specifically, if a franchisee operates their Aerus business from a location leased from a third party, Aerus has the option to have the franchisee assign any interest in the lease or sublease to Aerus. However, the FDD does not explicitly state whether Aerus assumes responsibility for the franchisee's past due rent in such a scenario.
Without a clear statement in the FDD, it is uncertain whether Aerus would be liable for any outstanding rental payments owed by the franchisee at the time of lease assignment. This is a crucial point for prospective franchisees to clarify, as assuming a lease with existing debt could have significant financial implications.
Therefore, it is recommended that potential Aerus franchisees directly address this issue with Aerus during their due diligence. They should inquire about Aerus's policy regarding past due rent and seek explicit confirmation on whether the franchisee remains liable for any outstanding amounts if the lease is assigned to Aerus. This clarification should ideally be obtained in writing to avoid any future misunderstandings or disputes.