Under what circumstances can Aerus require the transfer of a franchisee's interest due to disability?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Upon the permanent disability of Franchisee (if a natural person) or any principal of Franchisee, Company may, at Company's sole option, require the interest of such individual to be transferred to a third party in accordance with the conditions described in this Addendum within six (6) months after notice to Franchisee. Permanent disability will be determined by a licensed practicing physician Company selects, upon examination of the person; or if the person refuses to submit to an examination, then such person automatically will be deemed permanently disabled as of the date of such refusal for the purpose of this Addendum.
- E. Upon the death or claim of permanent disability of Franchisee or any principal of Franchisee, Franchisee or a representative of Franchisee must promptly notify Company of such death or claim of Permanent disability within fifteen (15) days of its occurrence. Any Transfer upon death or permanent disability will be subject to the same terms and conditions as described in this Addendum for any other Transfer.
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 any principal of the franchisee experiences permanent disability, Aerus has the option to require the interest of that individual to be transferred to a third party. This transfer must occur within six months after Aerus provides notice to the franchisee.
The determination of permanent disability is made by a licensed practicing physician selected by Aerus, who will examine the person in question. However, if the person refuses to submit to this examination, they will automatically be deemed permanently disabled from the date of refusal for the purposes of this requirement.
It is also the franchisee's responsibility to promptly notify Aerus of any claim of permanent disability within 15 days of its occurrence. Any transfer due to death or permanent disability will be subject to the same terms and conditions as any other transfer outlined in the addendum.