Where are Core Units defined for Aerus franchises?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to satisfy and achieve certain Minimum Sales Requirements (the "Minimum Sales Requirement") which are generally set forth below and which are based in whole or in part upon the sale of Core Units (Franchise Agreement Section 8.F. and Schedule 4). "Core Units" are such Products as designated from time to time by us in the Manuals:
Minimum Sales Requirement (Standard Program): The Minimum Sales Requirement for the Standard Program has 2 components, a Core Unit sales component and an "Aftermarket, labor, and parts" component, both of which must be on a quarterly basis.
Core Units: Ninety Percent (90%) of the Baseline for the Franchised Business, where the "Baseline" for the Franchised Business is the greater of (i) a number of units equal to forty-five (45) Core Units per quarter per Approved Location (excluding Licensed Outlets and Satellites) or (ii) the average quarterly Core Unit sales volume for the Franchised Business since the Approved Location first became part of a franchised business; provided, however, that this standard in subparagraph (ii) will not apply unless and until we give ninety (90) days written notice of our intention to implement this standard.
Aftermarket, labor and parts: Eighty percent (80%) of the average Gross Sales per Approved Location of aftermarket, labor and parts for all Approved Locations in the System for each quarter; provided, however, that Satellites and Licensed Outlets will be excluded from any such determination and any such Gross Sales recorded for a Satellite or Licensed Outlet will be included with such Gross Sales of the Approved Location with which the Satellite or Licensed Outlet is affiliated.
Minimum Sales Requirement (Associate Program): The Minimum Sales Requirement for the Associate Program has 2 components, a Core Unit sales component and an "Aftermarket, labor, and parts" component, both of which must be on a quarterly basis.
Core Units: 30 Core Unit sales per quarter.
Aftermarket, labor and parts: Eighty percent (80%) of the average Gross Sales per Approved Location of aftermarket, labor and parts for all Approved Locations in the System for each quarter. However, there is no Minimum Sales Requirement for aftermarket, labor and parts under the Associate Program if you are not required to maintain a service and repair center at your Approved Location.
Failure to Meet Minimum Sales Requirements. If you fail to meet the Minimum Sales Requirement, we may terminate the Franchise Agreement. The Minimum Sales Requirements should not be construed as a representation of possible earnings. We make no representation that you will achieve the Minimum Sales Requirements.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the definition of "Core Units" is found within Item 12, which discusses territory. Specifically, Core Units are defined in relation to the Minimum Sales Requirements that franchisees must meet. The document states that "Core Units" are Products designated by Aerus in the Manuals.
For franchisees operating under the Standard Program, the Minimum Sales Requirement has two components: a Core Unit sales component and an "Aftermarket, labor, and parts" component, both assessed quarterly. The Core Unit sales component is further defined as ninety percent (90%) of the Baseline for the Franchised Business. The Baseline is the greater of (i) forty-five (45) Core Units per quarter per Approved Location (excluding Licensed Outlets and Satellites) or (ii) the average quarterly Core Unit sales volume for the Franchised Business since the Approved Location first became part of a franchised business. However, the second standard (ii) will only apply after Aerus provides ninety (90) days written notice of their intention to implement it.
For franchisees under the Associate Program, the Core Unit sales component is simpler, set at 30 Core Unit sales per quarter. It's important to note that failure to meet these Minimum Sales Requirements can result in termination of the Franchise Agreement, although Aerus makes no representation that franchisees will achieve these requirements. Prospective franchisees should carefully review the Manuals to understand which Products are designated as Core Units and how these requirements will impact their business operations.