Under what condition can an Aerus franchisee renew their franchise term?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category | Section in Agreement | Summary |
|---|---|---|
| a. Length of the term | Section 2 and Schedule 1 | As defined in Schedule 1. Initial term is equal to 1 year. |
| 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 f |
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 renew their franchise for an additional one-year term if Aerus is offering new franchise rights in the state where the franchise is located and the franchisee satisfies specific requirements. These requirements include providing written notice of intent to renew 30 days before the initial term expires, ensuring no uncured defaults exist at the time of renewal, and achieving at least $10,000 in monthly Gross Sales during each of the prior six months.
Additionally, the franchisee must execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement. A $100 renewal fee must be paid, and the franchisee, their principals, and guarantors must sign a general release in favor of Aerus and its affiliates.
This means that renewal is not guaranteed and depends on Aerus's strategic decisions regarding franchise availability in the state. Furthermore, franchisees must maintain a consistent sales performance and be prepared to accept potentially different terms in a new franchise agreement. The relatively low renewal fee of $100 is a minor cost compared to the other conditions, particularly the sales performance and the acceptance of a new agreement.