What is Aerus's requirement regarding the execution of agreements by the transferee's shareholders, partners, members or other investors if the transferee is a business entity?

According to Aerus's 2025 Franchise Disclosure Document, if a franchisee transfers their Aerus business to a business entity, Aerus requires the transferee's shareholders, partners, members, or other investors to execute an agreement as principals. This agreement ensures that these individuals guarantee the performance of all obligations, covenants, and agreements outlined in the franchise agreement.

This requirement is in place to provide Aerus with additional security and assurance that the obligations of the franchise agreement will be met, even if the business entity transferee faces challenges. By having the principals of the business entity personally guarantee the performance, Aerus reduces its risk in the event of a transfer.

For a prospective Aerus franchisee, this means that if they plan to operate their franchise through a corporation, LLC, or partnership and later decide to transfer the franchise, the individuals behind that entity will need to be willing to personally guarantee the franchise obligations. This could impact the willingness of investors or partners to be involved in the franchise, as they would be taking on personal liability. Franchisees should carefully consider this requirement and discuss it with their legal and financial advisors before deciding to transfer their franchise to a business entity.