Under what condition is an Aerus principal or equity holder permitted to transfer an interest in the Aerus franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not directly or indirectly Transfer or assign, nor attempt to Transfer or assign, this Agreement, or any right or obligation hereunder, without the prior written consent of Company; provided, that a principal or equity holder in Franchisee may be permitted to transfer an interest in Franchisee pursuant to the provisions set forth in Addendum C attached hereto.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a principal or equity holder in an Aerus franchise may be permitted to transfer their interest in the franchise under specific conditions. While franchisees are generally prohibited from transferring or assigning their agreement without Aerus's prior written consent, an exception exists for principals or equity holders. The FDD specifies that the provisions for such transfers are detailed in Addendum C, which is attached to the franchise agreement.
However, the excerpt does not provide the details outlined in Addendum C. Therefore, the specific conditions under which a principal or equity holder can transfer their interest are not detailed in this section.
Prospective Aerus franchisees should carefully review Addendum C of the Franchise Agreement and consult with Aerus to fully understand the conditions and restrictions related to transferring interests in the franchise. Understanding these conditions is crucial for planning the future ownership and management structure of the franchise.