What is the initial term length for an Aerus franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company will identify any modifications or improvements to the premises of the Franchised Business, if any, which Franchisee shall make, at Franchisee's expense, prior to the Opening Date, or within such time period ending after the Opening Date as Company may designate in writing.
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- Term. Unless sooner terminated as provided herein, the duration of the initial term (the "Initial Term") and the renewal term (the "Renewal Term") will be as stated in Schedule 1 attached hereto, which, collectively, shall constitute the "Term" of this Agreement. Upon the expiration of the Initial Term, Franchisee may renew the franchise for one (1) Renewal Term, provided Company is then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and provided Franchisee meets all of the following conditions: (1) Franchisee has no uncured Event of Default under the Agreement at the time of renewal; (2) Franchisee gives Company written notice of Franchisee's desire to renew at least thirty (30) days prior to the end of the Initial Term; (3) Franchisee has achieved ten thousand dollars ($10,000) or more in Gross Sales each month during the prior six (6) months; (4) Franchisee executes Company's then-current form of franchise agreement, which, upon execution, will supersede this Agreement and which may differ from the terms of this Agreement, including, without limitation, the payment of higher or additional fees and revised Minimum Sales Requirements; (5) Franchisee pays Company a renewal fee of one hundred dollars ($100) (in lieu of paying an initial franchisee fee); and (6) Franchisee and its principals and guarantors execute a general release, in a form satisfactory to Company, of any and all claims against Company and Company's current and former Affiliates, officers, directors, owners, employees, and agents. In the event the parties continue to perform under this Agreement after expirat
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the initial term length and the renewal term for an Aerus franchise are detailed in Schedule 1 of the franchise agreement. The document states that the duration of both the initial term and any renewal term will be specified in Schedule 1, which collectively constitutes the full 'Term' of the agreement.
Upon the expiration of the initial term, an Aerus franchisee has the option to renew the franchise for one additional term, provided that Aerus is offering new franchise rights in the state at that time and the franchisee meets certain conditions. These conditions include having no unresolved defaults under the agreement at the time of renewal, providing written notice of intent to renew at least 30 days before the initial term ends, achieving $10,000 or more in gross sales each month for the six months prior to renewal, executing Aerus's then-current franchise agreement, and paying a renewal fee of $100. Additionally, the franchisee must execute a general release of claims against Aerus.
If the franchisee and Aerus continue to operate under the terms of the agreement after the initial or renewal term expires without a new agreement in place, the agreement will extend on a month-to-month basis. In this case, either party has the right to terminate the agreement with at least 30 days' written notice. However, the specific length of the initial term is not specified in this excerpt and is instead found in Schedule 1 of the franchise agreement.