What is the timeframe after the death of an Aerus franchisee or principal within which the interest must be transferred?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Upon Franchisee (if a natural person) or any Franchisee's principal's death, the executor, administrator or other personal representative of the deceased individual must Transfer such interest to a third party consented to by Company within twelve (12) months after the death. If no personal representative is designated or appointed or no probate proceedings are instituted with respect to the estate of the deceased individual, then the distributee of such interest must be consented to by Company. If the distributee is not consented to by Company, then the distributee must Transfer such interest to a third party consented to by Company within twelve (12) months after the death of the deceased individual.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if a franchisee or their principal dies, their interest must be transferred to a third party approved by Aerus within twelve months of the death. This responsibility falls on the executor, administrator, or personal representative of the deceased.
If there is no designated personal representative or probate proceedings, the distributee of the interest must be approved by Aerus. Should Aerus not approve of the distributee, that distributee then has twelve months from the date of death to transfer the interest to a third party that Aerus approves.
This clause ensures that Aerus maintains control over who operates its franchises, even in the event of a franchisee's death. It also provides a reasonable timeframe for the deceased's estate to handle the transfer of the franchise, whether through a designated representative or a distributee. Prospective franchisees should consider this when planning for the future of their business and estate.