What obligations does the transferor of an Aerus franchise retain after the transfer is complete?

According to Aerus's 2025 Franchise Disclosure Document, a transferor (the seller) of an Aerus franchise remains liable for all obligations to Aerus in connection with the franchised business that were incurred prior to the effective date of the transfer. This means that if the franchisee had any outstanding debts, unmet contractual requirements, or other liabilities to Aerus before the franchise was sold, they remain responsible for resolving those issues even after the transfer is complete.

To ensure clarity and documentation of this ongoing liability, the transferor is required to execute any and all instruments (legal documents) that Aerus reasonably requests. These documents serve as evidence of the transferor's responsibility for pre-transfer obligations. This requirement protects Aerus's financial and legal interests by ensuring that the company can still pursue the original franchisee for any unresolved issues that arose during their operation of the franchise.

For a prospective franchisee looking to sell their Aerus business, it's crucial to understand that selling the franchise does not automatically absolve them of all past responsibilities. Before finalizing a transfer, franchisees should ensure that all their accounts with Aerus are settled, and all contractual obligations are met to avoid potential legal or financial repercussions after the sale. They should also carefully review the transfer agreement and any related documents to fully understand the scope of their remaining liabilities.