What is the connection between the estimated initial investment for an Aerus franchise (Item 7) and the franchisor's assistance provided (Item 11)?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ASSOCIATE PROGRAMS)**
| Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |---------------------------------------------------------------------------------|-----------------------------------------|------------------------------------------|--------------------------------|--------------------------------------------------|------------------------------------------| | Initial Franchise(1) Fee | $3,000 | $1,000 | Lump Sum | At Signing of Franchise Agreement | Us | | Beyond Addendum(2) | $0 to $100 | $0 to $100 | Lump Sum | As Arranged | Us | | Fee | | | | | | | Leasehold | $0 to $15,000 | $0 to $5,000 | As Arranged | As Arranged | Other Suppliers; | | Improvements(3) | | | | | Contractors | | Furniture Fixtures | $2,500 to | $2,000 to | As Arranged | As Arranged | Us, our affiliate or | | and Equipment(4) | $15,000 | $5,000 | | | Other Suppliers | | Vehicle(5) | $0 to $8,440 | $0 to $8,440 | As Arranged | As Arranged | Suppliers | | Initial Inventory (supplies, consigned products, spare parts, etc.)(6) | $15,000 to $90,000 | $5,000 to $20,000 | Lump Sum and As Arranged | Upon Placement of Order and As Arranged | Us, our affiliate, or Other Suppliers | | Pre-Opening Training | $1,000 to | $1,000 to | As Arranged | As Arranged | Airline, Hotel, | | Expenses(7) | $7,000 | $7,000 | | | Restaurants, etc. | | Supplies (stationary, | $100 to $600 | $100 to $600 | As Arranged | As Arranged | Suppliers | | business cards, etc.) | | | | | | | (for 3 months) | | | | | | | Permits & Licenses | $50 to $200 | $50 to $200 | Lump Sum | As Arranged | Licensing Authorities | | Insurance deposits and Premiums (for first year)(8) | $1,500 to $2,000 | $1,500 to $2,000 | Lump Sum | As Arranged | Insurers | | Architect Fees | $0 to $5,000 | $0 to $2,000 | As Arranged | As Arranged | Architect | | Other Professional | $500 to $1,000 | $500 to $1,000 | As Arranged | As Arranged | Attorneys, | | Fees | | | | | Accountants, etc. | | Site Lease (for | $500 to $10,000 | $500 to $3,000 | Lump Sum | Monthly | Landlord | | 3 months)(9) | | | | | | | Utility Deposits | $350 to $450 | $350 to $450 | Lump Sum | As Arranged | Utility Companies | | Advertising and | $0 to $5,000 | $0 to $2,500 | As Arranged | As Arranged | Suppliers, Media, | | Promotion | | | | | etc. | | Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |------------------------------------|-----------------------------------------|------------------------------------------|----------------------|-------------|-------------------------------------| | Signage | $1,000 to $5,000 | $1,000 to $2,500 | As Incurred | As Incurred | Signage Suppliers | | Additional Funds | $5,000 to | $3,000 to | As Incurred | As Incurred | Employees, | | (3 months)(10) | $50,000 | $10,000 | | | Suppliers | | Goodwill(11) | $0 to $200,000 | $0 to $25,000 | Lump Sum | At Close | Us and Our affiliates | | TOTALS | $30,500 to $417,790 | $16,000 to $95,790 | | | | Notes: Your estimated initial investment will vary depending upon if you choose the Standard Program or the Associate Program. Except as otherwise noted in this Disclosure Document, all fees payable to us are non-refundable. Inflation, tariffs, and worldwide events may impact various costs, including, among others, furnishings, fixtures, equipment, building costs, vehicle costs, and inventory.
Note 1. See Item 5 of this Disclosure Document for more information about the initial franchise fee. In limited circumstances, we will finance or reduce the initial franchise fee. See Item 10 for more details about financing of initial franchise fees.
Note 2. The Beyond Fee is only applicable to franchisees who sign a Beyond Addendum.
Note 3. The cost of leasehold improvements will vary depending on the condition and size of the site, the local cost of contract work, and the location of the Franchised Business, and zoning requirements. The high estimated figures include remodeling walls, ceilings, floors, and other construction including electrical and carpentry work. The low estimate assumes that the leasehold is in suitable operating condition immediately on your taking possession of the premises and/or that the landlord will make the leasehold improvements and amortize their cost over the term of the lease.
Note 4. The furniture, fixtures and equipment that you will be required to purchase or lease will vary depending on the size of the premises and the type of Franchised Business you choose to operate. We require a standard interior decor style. This estimate also includes the cost of the required computer system, as well as high-speed internet access, printer, scanner, fax, and bar code scanner.
Note 5. The low end of our estimate includes fuel, maintenance expenses and car payments for three months for an existing vehicle, and the high end of our estimate includes a 10% down payment for a new vehicle and three months of payments. We do not require a vehicle and vehicle wrap under either the Standard or Associate Programs, however, it may be desirable to have one.
Note 6. Opening inventory of products and supplies will vary based on your expected volume of business, the size of your premises, and the size of any storage areas on the premises. You will order an initial inventory of Consigned Products. The estimate above includes your Security
Deposit for an initial supply of Consigned Products, which Security Deposit is fully earned and payable according to the Manuals at the time of signing of the Franchise Agreement. Also included in the estimate is the cost of an initial supply of parts and supplies. See Item 8 of this Disclosure Document for more information about your purchase requirements.
Note 7. This amount represents our estimate of transportation and living expenses for two trainees attending our initial training program in Dallas, Texas. You will be responsible for paying these expenses.
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, there are several connections between the estimated initial investment costs outlined in Item 7 and the assistance Aerus provides as detailed in Item 11. Item 7 includes costs related to the initial inventory of consigned products, spare parts, and supplies, which for the Standard Program ranges from $15,000 to $90,000 and for the Associate Program ranges from $5,000 to $20,000. Item 11 specifies that Aerus will provide an initial inventory of Consigned Products, parts, accessories, and supplies upon receipt of the franchisee's order and payment of the requisite Security Deposit. The franchisee is responsible for shipping and handling charges. Furthermore, Aerus will replenish this inventory as long as the franchisee complies with the Franchise Agreement and pays the necessary Security Deposits.
Item 7 also lists pre-opening training expenses, estimated between $1,000 and $7,000 for both Standard and Associate Programs, covering transportation, lodging, and meals for two trainees attending the initial training program in Dallas, Texas. Item 11 clarifies that Aerus does not charge tuition or fees for training-related materials, but franchisees are responsible for all training-related expenses. Note 7 in Item 7 mentions that the higher end of the training estimate accounts for the extra week of training required if the franchisee signs a Beyond Addendum, which is further detailed in Item 11.
Additionally, Item 7 includes an estimated cost for a computer system, hardware, and software, ranging from $1,200 to $2,200, as mentioned in Item 11. Aerus will provide software updates and revisions for proprietary software, with the cost included in the Administration and Technical Support Fee. However, franchisees are responsible for maintaining and insuring the hardware and equipment and for all third-party software purchases and licensing fees. Item 7 also notes the necessity of securing a retail location, with estimated site lease costs for three months ranging from $500 to $10,000 for the Standard Program and $500 to $3,000 for the Associate Program. Item 11 states that Aerus will approve or disapprove a proposed site within 30 days of receiving all requested information, and failure to agree on a site gives Aerus the right to terminate the Franchise Agreement.