Under what conditions is an Aerus franchise agreement automatically terminated without action from either party?

The 2025 Aerus Franchise Disclosure Document states that the termination of the Franchise Agreement will automatically terminate any and all licenses and agreements made by the franchisee with Outlet Licensees and Sales Representatives. This means that if the agreement between Aerus and the franchisee ends, any agreements the franchisee has with their sales representatives or outlet licensees are also immediately terminated.

This automatic termination clause has significant implications for an Aerus franchisee. It underscores the importance of maintaining a good standing with Aerus, as any termination of the franchise agreement will have a ripple effect, disrupting relationships with sales representatives and outlet licensees. The franchisee should carefully consider this when building their network of representatives and licensees, understanding that their agreements are contingent upon the continuation of the primary franchise agreement.

Many franchise agreements contain clauses that address the termination of related agreements upon the termination of the primary franchise agreement. This is a standard practice designed to protect the integrity of the brand and ensure a clean break in the event of a dispute or other termination event. Prospective Aerus franchisees should be aware of this clause and factor it into their business planning and risk assessment.