Under what condition may the Aerus Guarantee not be terminated?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- C.
Termination, non-renewal or expiration of this Agreement shall not operate as a cancellation of any indebtedness owing to Company or Company's Affiliates by Franchisee at the time of such termination.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the termination, non-renewal, or expiration of the Franchise Agreement does not cancel any outstanding debts owed to Aerus Franchising, LLC or its affiliates by the franchisee at the time of termination. This means that even if the franchise agreement ends, the franchisee is still responsible for paying back any money owed to Aerus.
This provision protects Aerus by ensuring that franchisees cannot escape their financial obligations simply by terminating the agreement. It also highlights the importance of franchisees carefully managing their finances and understanding their debt obligations to Aerus throughout the term of the agreement.
For a prospective Aerus franchisee, this means understanding all financial obligations and planning accordingly. Franchisees should maintain detailed records of all transactions with Aerus and its affiliates and seek professional advice if they are unsure about their financial responsibilities. This clause underscores the importance of fulfilling all financial commitments to Aerus, irrespective of the franchise agreement's status.