What are the requirements for an Aerus franchisee to renew or extend their franchise term?
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 $10,000 in monthly Gross Sales during each of the prior six months; (4) you execute our then-current form of franchise agreement (which may contain materially different terms and conditions than your original Franchise Agreement); (5) you pay a $100 renewal fee |
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, franchisees may have the option to renew their franchise for an additional one-year term, provided that Aerus is offering new franchises in the state at the time of renewal. To be eligible for renewal, franchisees must meet several conditions.
First, the franchisee must provide written notice of their intent to renew at least 30 days before the expiration of the current term. Second, there must be no outstanding defaults that have not been resolved at the time of renewal. Third, the franchisee must have achieved a minimum of $10,000 in monthly gross sales for each of the six months leading up to the renewal.
Additionally, franchisees must execute Aerus's then-current franchise agreement, which may include terms and conditions that differ significantly from the original agreement. They are also required to pay a renewal fee of $100. Finally, the franchisee, their principals, and any guarantors must sign a general release in favor of Aerus and its affiliates, releasing them from any potential liabilities or claims.