How is the Aerus Consignee required to sell the consigned products?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ntained in any other agreement, Consignee hereby agrees that at all times that it shall:
- (a) keep the Consigned Products separate and apart from any other goods or assets of Consignee or others and clearly mark at all times in its books and records that the Consigned Products are the property of Company;
- (b) sell the Consigned Products only in the ordinary course of business of Consignee pursuant to the Franchise Agreement and any other instructions of Company, at the prices set by Company, and providing only the manufacturer's warranties given with the Consigned Products;
- (c) all proceeds generated from the Consigned Products are the property of Company and shall be paid into the bank account designated by Consignee as being a trust account for the benefit solely of Company. If Company so requests, Consignee shall grant Company signing authority on such bank account. Consignee agrees that all Proceeds shall be held by it in trust solely for the benefit of Company;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, a Consignee must adhere to specific guidelines when selling consigned products. Aerus retains full legal and equitable title to these products, meaning the Consignee is essentially selling on Aerus's behalf.
The Consignee is obligated to sell the consigned products in the ordinary course of their Aerus business, following the instructions provided in the Franchise Agreement or any other directives from Aerus. The products must be sold at prices set by Aerus, and the Consignee can only provide the manufacturer's warranties that come with the products. They cannot offer any additional or extended warranties beyond what Aerus provides.
All proceeds from the sale of consigned products are the property of Aerus and must be deposited into a designated bank account held in trust for Aerus. Aerus may also request signing authority over this account. Furthermore, the Consignee must keep the consigned products separate from their own assets and clearly mark in their records that these products remain the property of Aerus. This arrangement ensures that Aerus maintains control over its products and the revenue generated from their sale through the consignment arrangement.