factual

Where must Aerus Consigned Products be maintained before delivery to customers?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

ability company ("Company"), having offices at 14841 Dallas Parkway, Suite 500, Dallas, Texas 75254 and the individual or entity executing this Agreement as Consignee ("Consignee"). All capitalized terms used herein that are not otherwise defined have the meanings given such terms in the Franchise Agreement.

WITNESSETH:

WHEREAS, Consignee and Company ("Aerus Franchising") have entered into the Franchise Agreement, which agreement governs the operations by Consignee of a franchised business engaged in, among other things, the sale of certain consigned products and other related products and services as permitted by, and more particularly described in, the Franchise Agreement;

NOW, THEREFORE, for and in consideration of the premises and promises set forth herein and in the Franchise Agreement, and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, Company and Consignee agree as follows:

    1. Consignment Arrangement. Company has consigned or agrees to consign to Consignee, and Consignee agrees to receive on consignment from the Company, the Consigned Products for sale, at Company's listed retail prices. This is intended to be a true consignment and Company shall at all times retain the full legal and equitable title to the Consigned Products. This Agreement is entered into as a precautionary measure to insure that Company's rights to the Consigned Products shall be first and prior to all other creditors of Consignee under all circumstances.
    1. Security Interest. To secure the due and punctual payment of all amounts due to Company for the proceeds arising from the sale or return to Company of the Consigned Products, Consignee hereby agrees that Company shall have, and hereby grants to and creates in favor of Company, a security interest in and to the Consigned Products and all proceeds thereof, as more fully-described on the Schedule of Collateral attached hereto (the "Collateral"). Consignee shall pay the cost of filing or recording this Agreement and any related financing statement in all public offices and the cost of all searches of records, wherever filing or recording or searching of records is deemed by Company to be necessary.

Source: Item 23 — Receipts (FDD pages 74–305)

What This Means (2025 FDD)

The 2025 Aerus Franchise Disclosure Document states that franchisees receive Consigned Products from Aerus for sale. The franchisee is obligated to receive these products on consignment. Aerus retains full legal title to these Consigned Products.

The FDD stipulates that franchisees must establish and maintain a service and repair center at the Approved Location. However, the document does not explicitly state where the Consigned Products must be maintained before delivery to customers. It is implied that the products are kept at the franchisee's Approved Location, given the requirement for a service and repair center there.

To gain a comprehensive understanding of the specific requirements for storing Consigned Products, a prospective Aerus franchisee should directly inquire with Aerus about the designated storage protocols and expectations. This will ensure compliance and efficient management of inventory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.