Is there an option to renew or extend the term of an Aerus franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ad these provisions in the agreements attached to this disclosure document.**
THE FRANCHISE RELATIONSHIP
| 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, the initial term of the franchise agreement is one year, as defined in Schedule 1. Aerus franchisees have the option to renew their franchise for an additional one-year term if Aerus is offering new franchise rights for Aerus businesses in the state where the franchise is located and the franchisee satisfies the requirements for renewal.
To renew the Aerus franchise agreement, franchisees must meet several conditions. First, they must provide written notice of their intent to renew 30 days before the expiration of the initial term. Second, there must be no uncured default at the time of renewal. Third, the franchisee must have achieved at least $10,000 in monthly Gross Sales during each of the prior six months.
Additionally, franchisees must execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement. They must also pay a $100 renewal fee. Finally, the franchisee, their principals, and their guarantors must sign a general release in favor of Aerus and its affiliates. These conditions are typical in franchising, as franchisors want to ensure franchisees are in good standing and committed to the brand before renewing the agreement.