What must a transferor of an Aerus franchise do regarding obligations incurred prior to the transfer?

According to Aerus's 2025 Franchise Disclosure Document, a transferor remains liable for all obligations to Aerus in connection with the franchised business that were incurred prior to the effective date of the transfer. To formalize this liability, the transferor must execute any instruments that Aerus reasonably requests to evidence such liability.

In practical terms, this means that if an Aerus franchisee sells their business, they are still responsible for any outstanding debts, fees, or other financial obligations owed to Aerus that accrued before the sale was finalized. This could include unpaid royalties, advertising fees, or any other amounts due under the franchise agreement.

This provision protects Aerus by ensuring that it can recover any outstanding amounts even after a franchise has been transferred to a new owner. Prospective franchisees should carefully consider this clause, as it means they could be held responsible for the previous owner's debts if they purchase an existing Aerus franchise. It is essential to conduct thorough due diligence and obtain clear documentation of all outstanding obligations before completing the transfer.