What written notice is required from an Aerus franchisee to renew the franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ad these provisions in the agreements attached to this disclosure document.**
THE FRANCHISE RELATIONSHIP
| Category | Section in Agreement | Summary |
|---|---|---|
| a. Length of the term | Section 2 and Schedule 1 | As defined in Schedule 1. Initial term is equal to 1 year. |
| 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 |
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, a franchisee must provide written notice of their desire to renew their franchise 30 days before the expiration of the initial term. The initial term for an Aerus franchise is one year, as defined in Schedule 1. Therefore, the franchisee must notify Aerus in writing at least 30 days before the one-year term ends if they wish to renew.
However, submitting written notice is only one of several conditions that must be met for renewal. Aerus must be offering new franchise rights for Aerus businesses in the state where the franchise is located. The franchisee must not be in default at the time of renewal. The franchisee must have achieved at least $10,000 in monthly Gross Sales during each of the prior six months. The franchisee will be required to execute Aerus's then-current form of franchise agreement, which may contain materially different terms and conditions than the original agreement. The franchisee must pay a $100 renewal fee. Finally, the franchisee, their principals, and their guarantors must sign a general release in favor of Aerus and its affiliates.
It is important for prospective Aerus franchisees to understand all of the conditions for renewal, not just the written notice requirement. Failing to meet any of these conditions could prevent a franchisee from renewing their franchise, even if they provide timely written notice. The requirement to sign a new franchise agreement with potentially different terms is also a significant consideration, as it could impact the franchisee's rights and obligations going forward.