What agreements are included in Exhibit 3 for Aerus franchisees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
I received a franchise disclosure document dated May 15, 2025 that included the following exhibits:
State Addenda (California, Illinois, Maryland, Minnesota, New York, North Dakota, South Dakota, Virginia, Washington, Wisconsin)
Exhibit 1 – Financial Statements
Exhibit 2(a) – Franchise Agreement (Standard Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(b) – Franchise Agreement (Associate Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(c) – Beyond Addendum
Exhibit 3 – Secured Promissory Note, Security Agreement and Guaranty
Source: Item 22 — Contracts (FDD page 74)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Exhibit 3 includes the Secured Promissory Note, Security Agreement, and Guaranty. The Secured Promissory Note is relevant if Aerus or its affiliates provide financing to the franchisee.
The franchisor or its affiliates may offer financing for the initial franchise fees, security deposit, accessories, parts and supplies purchased from them, and the purchase of assets of an existing Aerus business. The amount financed and the terms can vary based on the Aerus Business's performance, goodwill associated with the location, and the franchisee's creditworthiness.
If financing is provided, Aerus anticipates that the franchisee will make an initial down payment ranging from approximately $2,500 to $50,000. The balance will be paid in equal monthly installments until fully paid, or as otherwise determined by Aerus or its affiliates. The debt can be prepaid without penalty. However, defaulting on payment obligations may lead to the termination of the Franchise Agreement. If any amount is financed, the franchisee must sign the secured promissory note, which is part of Exhibit 3 and will be guaranteed by the principals of the franchisee.