What section of the Aerus Franchise Agreement discusses the renewal or extension of the term?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| 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; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
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 renewal or extension of the franchise term is addressed in Section 2 and Schedule 1 of the Franchise Agreement. Specifically, if Aerus is offering new franchise rights in the state where the existing franchise is located, a franchisee who meets the renewal requirements may renew for an additional one-year term.
To renew their Aerus franchise, several conditions must be met. The franchisee must provide written notice of their intent to renew 30 days before the initial term expires. At the time of renewal, there must be no outstanding defaults. The franchisee must have achieved at least $10,000 in monthly Gross Sales during each of the six months before renewal.
Additionally, the franchisee must execute Aerus's then-current form of franchise agreement, which may have materially different terms and conditions than the original agreement. A $100 renewal fee is required, and the franchisee, their principals, and guarantors must sign a general release in favor of Aerus and its affiliates. Prospective franchisees should carefully consider these conditions, especially the potential for a new franchise agreement with different terms, before deciding to renew their Aerus franchise.