What is considered a 'Payment' to Aerus, as defined in the franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Company all fees, payments and deposits set forth in Schedule 3 attached hereto and required elsewhere in this Agreement (the remittance of each, a "Payment") in the amounts, at the time, and in the manner described in this Agreement or the Policies and Procedures or elsewhere in the Manuals. Each Payment to be made to Company must be made free and clear at the time, and in the manner, specified in this Agreement, without deduction or offset. TIME IS OF THE ESSENCE with respect to all Payments to be made. All unpaid obligations under this Agreement will bear interest from the date due until the date of receipt by Company, at one and one-half percent (1.5%) per month, or the maximum rate allowed by applicable law, whichever is less.
- A. At Company's option, Company may withdraw funds from Franchisee's designated bank account by electronic funds transfer or comparable method in the amount of any Payment or any other amounts due hereunder to Company and for all subsequent payments due to Company, as further described in the Manuals or otherwise in writing. Franchisee shall at all times maintain in its designated bank account a minimum balance in the amount specified in the Manuals.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a 'Payment' refers to any fees, payments, and deposits that the franchisee is obligated to pay to Aerus. These financial obligations are detailed in Schedule 3 of the franchise agreement and other sections of the agreement, as well as in the Policies and Procedures or the Manuals.
For a prospective Aerus franchisee, this means that all financial obligations outlined in the franchise agreement, schedules, and manuals are considered 'Payments'. It is crucial for franchisees to understand the amounts, timing, and methods for making these payments to avoid any defaults.
The franchise agreement specifies that all payments must be made without any deductions or offsets, and time is of the essence for all payments. Late payments will incur interest at a rate of 1.5% per month, or the maximum rate allowed by law, whichever is less. Aerus also has the option to withdraw funds directly from the franchisee's designated bank account via electronic funds transfer for any payments due, provided the franchisee maintains a minimum balance as specified in the manuals. This underscores the importance of maintaining sufficient funds in the designated account to cover all obligations to Aerus.
Understanding the definition of 'Payment' is critical for managing the financial aspects of the Aerus franchise and maintaining a good standing with the franchisor. Franchisees should carefully review Schedule 3 and related documents to fully understand their payment obligations.