What is the sole effect of revocation or termination by the Guarantor for Aerus?

According to Aerus's 2025 Franchise Disclosure Document, the sole effect of revocation or termination by the Guarantor is to exclude the Guarantor's liability for Guaranteed Obligations arising after the date Aerus receives written notice. This exclusion applies only to obligations unrelated to those already in place or transactions entered into before that notice date.

In simpler terms, if someone has guaranteed the financial obligations of an Aerus franchisee, they can't be held responsible for new debts or transactions the franchisee incurs after Aerus receives their written termination notice. However, the guarantor remains liable for any existing debts, obligations, or transactions that were in place before the termination notice was received. This includes any modifications, extensions, or renewals of those existing obligations, even if these occur after the termination notice.

This provision protects Aerus by ensuring that existing financial guarantees remain in effect for the life of the initial obligations, regardless of any later attempts to revoke the guarantee. It also means that a guarantor cannot escape liability for obligations they initially agreed to cover simply by terminating their guarantee at a later date. Prospective Aerus franchisees should carefully consider the implications of any guarantees they or others provide, as these guarantees will likely extend beyond any attempted termination, covering all existing and modified obligations.