On what basis is interest calculated for the Aerus Secured Promissory Note?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
of Execution: |
EXHIBIT 3
SECURED PROMISSORY NOTE, SECURITY AGREEMENT, GUARANTEE
SECURED PROMISSORY NOTE
| $ |
|---|
| As of, |
| Dallas, Texas |
| FOR VALUE RECEIVED, the undersigned,, a |
| ("Maker"), hereby [jointly, severally and] unconditionally promises to pay to the order of AERUS |
| FRANCHISING, LLC, a Delaware limited liability company ("Payee"), at 14841 Dallas Parkway, |
| Suite 500, Dallas, Texas 75254, or such other address as the holder hereof may, from time to time, |
| designate in writing, the principal sum of AND/100 DOLLARS |
| ($), in lawful money of the United States of America, together with interest on the |
| unpaid principal balance from day-to-day remaining, computed from the date of advance until |
| maturity at a rate per annum equal to percent (%) (the "Fixed Rate"). |
| Reference |
| is |
| hereby |
| made |
| to |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| by and between Maker and Payee ("Franchise Agreement"). |
| For purposes of calculating interest accrued hereon at the Fixed Rate, interest on this Note |
| shall be calculated on the basis of the actual days elapsed over a 360-day year. |
| Principal and accrued interest on this Note, computed as aforesaid, shall be due and payable |
| as follows: |
| (i) in equal mon |
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, interest on the Secured Promissory Note is calculated on the basis of the actual days elapsed over a 360-day year. The interest accrues on the unpaid principal balance from day to day, starting from the date of the advance until maturity, at a fixed rate per annum.
This means that for every day the principal balance remains unpaid, interest will accumulate. The calculation uses a 360-day year, which is common in financial calculations and may result in slightly higher interest charges compared to a 365-day year. The specific fixed interest rate is determined at the time the note is issued and is documented in the agreement.
Prospective Aerus franchisees should carefully review the terms of the Secured Promissory Note, paying close attention to the stated fixed interest rate and the schedule for principal and interest payments. Understanding how interest is calculated is crucial for managing their financial obligations to Aerus. The note requires equal monthly installments and a final payment including any unpaid principal and accrued interest.