Upon expiration or termination of the Aerus Franchise Agreement, is the tenant permitted to assign the lease to Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- F. Upon expiration or termination of this Agreement, Franchisee shall do any one or more of the following, at Company's option:
- (1) If Franchisee operates the Franchised Business premises under a lease with a third party or, with respect to any lease for equipment used in the operation of the Franchised Business, assign to Company any interest which Franchisee has in any lease or sublease for the Approved Location or any equipment related to the Franchised Business.
- (2) If Franchisee, or any Affiliate of Franchisee, owns the Approved Location, sell or lease at market rents to Company the Franchisee's business premises including any building thereon, if applicable, for the fair market value of the land and building.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Aerus has the option to request the franchisee to assign any interest in the lease or sublease for the approved location or any equipment related to the franchised business to Aerus. Alternatively, if the franchisee or an affiliate owns the approved location, Aerus can choose to buy or lease the business premises at market rates.
This clause ensures that Aerus has options regarding the location of the franchise after the agreement ends. It allows Aerus to potentially continue operations at the same site, which can be beneficial for maintaining brand presence and customer relationships. The franchisee is obligated to cooperate with Aerus in these matters, depending on Aerus's decision.
For a prospective franchisee, this means that they may be required to assign their lease to Aerus or sell/lease their property to Aerus if the agreement is terminated or expires. This could impact the franchisee's long-term plans for the business location and should be considered carefully. It is important to understand the terms of the lease agreement and the potential implications of assigning it to Aerus.