If any principal of an Aerus franchisee attempts a Transfer in violation of the agreement, can Aerus terminate the agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not directly or indirectly Transfer or assign, nor attempt to Transfer or assign, this Agreement, or any right or obligation hereunder, without the prior written consent of Company; provided, that a principal or equity holder in Franchisee may be permitted to transfer an interest in Franchisee pursuant to the provisions set forth in Addendum C attached hereto.
Company's failure in any instance to invoke a right to terminate shall not waive or otherwise limit its ability or right to properly terminate this Agreement thereafter.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee cannot directly or indirectly transfer or assign the agreement, or any rights or obligations, without Aerus's prior written consent. However, a principal or equity holder in the franchisee may be permitted to transfer an interest in the franchisee under the provisions in Addendum C.
Aerus retains the right to terminate the agreement if a franchisee attempts to transfer the agreement without prior written consent. Aerus's failure to invoke the right to terminate in one instance does not waive its ability to terminate the agreement later.
This means that if a franchisee principal attempts to transfer their interest in the Aerus franchise without obtaining the required consent from Aerus, Aerus has the right to terminate the franchise agreement. This provision protects Aerus by ensuring they have control over who becomes a franchisee and maintains the standards and reputation of the brand.