What is Aerus's obligation when assigning the franchise agreement to another party?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company shall be permitted to assign this Agreement at any time and from time to time; provided, however, no such assignment will be made by Company except to an assignee who, in Company's good faith judgment, is willing and able to assume Company's obligations under this Agreement.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus is permitted to assign the franchise agreement at any time. However, Aerus is obligated to assign the agreement only to an assignee who, in Aerus's good faith judgment, is willing and able to assume Aerus's obligations under the agreement.
This means that while Aerus retains the right to transfer the franchise agreement to another party, they must ensure that the new party is capable of fulfilling the obligations that Aerus has under the original agreement. This provision protects the franchisee by ensuring that the new franchisor is a responsible and capable entity.
For a prospective franchisee, this clause offers some security. It prevents Aerus from assigning the agreement to just anyone; the assignee must be deemed capable of upholding Aerus's responsibilities. However, the FDD does not define the criteria Aerus uses to judge whether an assignee is 'willing and able,' so a prospective franchisee may want to seek clarification on this point.