If a principal of an Aerus franchisee becomes permanently disabled, how long does Aerus have to require the interest of that individual to be transferred to a third party?

According to Aerus's 2025 Franchise Disclosure Document, if a principal of an Aerus franchise becomes permanently disabled, Aerus has the option to require the interest of that individual be transferred to a third party. If Aerus chooses to exercise this option, the transfer must occur within six months after Aerus provides notice to the franchisee.

The FDD specifies that permanent disability will be determined by a licensed practicing physician selected by Aerus, following an examination of the person in question. Should the person refuse to submit to such an examination, they will automatically be deemed permanently disabled as of the date of their refusal for the purposes of this clause.

This clause is important for prospective franchisees to understand, especially if their franchise is structured with multiple principals. The possibility of a forced transfer due to disability could have significant implications for the business's ownership and management. Franchisees should consider discussing disability planning and potential buy-out agreements with their partners to mitigate any potential disruptions.