What is the length of the initial franchise term for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| a. Length of the term | Section 2 and Schedule 1 | As defined in Schedule 1. Initial term is equal to 1 year. |
| 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 |
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 initial franchise term is for a period of one year, as defined in Schedule 1 and Section 2 of the franchise agreement. This relatively short initial term is less common in the franchise industry, where terms of 5, 10, or even 20 years are more typical.
At the end of the initial term, Aerus franchisees have the option to renew the franchise for an additional one-year term if Aerus is offering new franchises in the state at that time and the franchisee meets certain requirements. These requirements include providing written notice 30 days before the expiration of the initial term, having no uncured defaults, achieving at least $10,000 in monthly Gross Sales during each of the prior six months, executing Aerus's then-current form of franchise agreement, paying a $100 renewal fee, and signing a general release in favor of Aerus and its affiliates.
The short initial term and renewal conditions provide Aerus with flexibility but also place specific performance expectations on the franchisee. The franchisee must meet sales targets and remain in good standing to qualify for renewal. The fact that the renewal agreement may contain "materially different terms and conditions" is also something a prospective franchisee should carefully consider, as the terms of the franchise could change after only one year. This is a notable point, as most franchises lock in the terms for a longer period, offering more predictability.