If Aerus is not offering new franchises in my state, can I still renew my Aerus franchise?
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 ability to renew your franchise is contingent on Aerus offering new franchises in your state at the time of renewal. Specifically, if Aerus is not offering new franchise rights for the establishment of Aerus businesses in the state where your franchise is located, you will not be able to renew your franchise agreement. This is a critical factor for prospective franchisees to consider, as it directly impacts the long-term viability and security of their investment.
To be eligible for renewal, assuming Aerus is offering new franchises in your state, you must meet several conditions. These include providing written notice of your intent to renew 30 days before the expiration of the initial one-year term, ensuring there are 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, you must execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than your original agreement, pay a $100 renewal fee, and sign a general release in favor of Aerus and its affiliates.
The renewal process also involves signing Aerus's current franchise agreement, which may have different terms than the original. This is a common practice in franchising, as franchisors update their agreements to reflect changes in the market, legal requirements, and their own business practices. Franchisees need to carefully review the new agreement with legal counsel to understand any changes and their potential impact. The one-year renewal term is shorter than is typical in the franchise industry, where 10-year terms are more common.
In summary, the renewal of an Aerus franchise is not guaranteed and depends on Aerus's willingness to offer new franchises in the franchisee's state. Meeting the specified conditions, such as sales performance and adherence to the franchise agreement, is also essential. Prospective franchisees should carefully consider these factors and discuss the long-term renewal prospects with Aerus before investing in a franchise.