If the Aerus tenant defaults on the lease, does Aerus have an obligation to cure the default?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of Tenant's default under the terms of the Lease, Company may, but is not required to, cure the default and may assume the lease in Company's name.
If Company elects to cure the default and assume the Lease, Company shall, within thirty (30) days after Company receives notice of the default, notify Landlord of its intent to cure such default and to assume the Lease.
Company shall cure the default within thirty (30) days of such election or, if the default cannot be reasonably cured within such thirty (30) day period, then Company shall commence and proceed to cure the default within such time as is reasonably necessary to cure the default.
If Company elects to assume the Lease, Landlord agrees to recognize Company as the Tenant under the Lease, and Tenant shall no longer have any rights thereunder.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus does not have an obligation to cure a default if the tenant (franchisee) defaults on their lease. Aerus has the option to cure the default and assume the lease, but it is not required to do so.
If Aerus chooses to cure the default and assume the lease, it must notify the landlord within thirty days of receiving notice of the default. Aerus then has thirty days to cure the default, or if the default cannot be reasonably cured within that time, Aerus must begin and continue to cure the default within a reasonable timeframe. If Aerus assumes the lease, the landlord agrees to recognize Aerus as the tenant, and the original tenant (franchisee) will no longer have any rights under the lease.
This clause protects Aerus from being automatically liable for a franchisee's lease obligations. However, it also gives Aerus the option to take over a location if the franchisee is struggling, which could be beneficial in maintaining brand presence and continuity. A prospective franchisee should understand that Aerus is not obligated to step in and cover their lease obligations if they default.