Under what condition can an Aerus franchisee renew their franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| 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; and (6) you, your principals, and your guarantors sign a general release in favor of us and our affiliates. |
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, an Aerus franchisee may be able to renew their franchise agreement for an additional one-year term if Aerus is offering new franchise rights for Aerus businesses in the state where the franchise is located.
To renew the franchise agreement, the franchisee must meet several conditions. First, they must provide written notice of their intent to renew 30 days before the initial term expires. Second, there cannot be any outstanding defaults 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. Fourth, the franchisee must execute Aerus's then-current form of franchise agreement, which may have materially different terms and conditions than the original agreement. Fifth, the franchisee must 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.
It is important to note that the new franchise agreement may contain different terms and conditions than the original agreement. This means that the franchisee should carefully review the new agreement before signing it to ensure that they understand the terms and conditions. Also, the franchisee needs to maintain a consistent sales performance of $10,000 in monthly gross sales for the six months leading up to the renewal, which could be challenging for some franchisees. The franchisee must also resolve any defaults before the renewal date, which requires careful monitoring of compliance with the franchise agreement.