Under what circumstances does an Aerus franchisee need to obtain franchisor consent for a transfer?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| j. Assignment of | Section 20 | No restriction on right to transfer |
| contract by Franchisor | ||
| k. "Transfer" by | Section 20 and | Includes sale, assignment, grant, conveyance, pledge, |
| Franchisee-defined | Addendums A and C | hypothecation or encumbrance. |
| l. Franchisor approval of transfer by Franchisee | Addendum C | You must obtain our consent before transferring any interest in the Franchise Agreement, in the assets of the Franchised Business, or any ownership interest in the franchisee (if the franchisee is not a natural person). |
| m. Conditions for Franchisor approval of transfer | Addendum C | Conditions include, among others: You must pay a transfer fee. The transferee also must sign current Franchise Agreement or enter into written agreement assuming all of your obligations. |
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, a franchisee must obtain consent from Aerus before transferring any interest in the Franchise Agreement. This requirement extends to the assets of the franchised business or any ownership interest in the franchisee, particularly if the franchisee is not a natural person. This stipulation is detailed in Addendum C of the Franchise Agreement.
This condition means that if a franchisee wishes to sell their Aerus franchise, transfer ownership to another party, or even alter the ownership structure of their business (if it's a corporation or partnership), they must first seek and receive approval from Aerus. This provision allows Aerus to maintain control over who operates their franchises and ensures that new operators meet their standards.
Several conditions apply to obtaining Aerus's approval for a transfer. These include paying a transfer fee and ensuring that the transferee signs the current Franchise Agreement or a written agreement assuming all of the franchisee's obligations. These conditions are in place to protect the Aerus brand and ensure a smooth transition of ownership and operational responsibilities.
Franchise agreements commonly include transfer restrictions and approval processes. These measures help franchisors maintain brand consistency and quality control across their franchise network. Prospective Aerus franchisees should carefully review Addendum C of the Franchise Agreement to fully understand the requirements and procedures for transferring their franchise.