Under what conditions can the Aerus Franchise Agreement be modified?
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, the Franchise Agreement can be modified when a franchisee seeks to renew their franchise. Specifically, if Aerus is offering new franchise rights in the state where the franchise is located, the franchisee may renew for an additional one-year term. However, this renewal is contingent upon several conditions.
To renew the Aerus franchise agreement, the franchisee must provide written notice of their intent to renew 30 days before the expiration of the current term. They must also not be in default of the agreement at the time of renewal. A key financial requirement is that the franchisee must have achieved at least $10,000 in monthly Gross Sales during each of the six months prior to renewal.
Most significantly, the franchisee must execute Aerus's then-current form of franchise agreement, which, as the FDD states, "may contain materially different terms and conditions than your original Franchise Agreement". The franchisee is also required to pay a $100 renewal fee and ensure that they, their principals, and any guarantors sign a general release in favor of Aerus and its affiliates. This means that while the initial term is for one year, the terms of the agreement can change upon renewal, potentially impacting the franchisee's obligations and rights.