What are 'Core Units' 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, 'Core Units' are specific products designated by Aerus in its manuals. These Core Units are a component of the Minimum Sales Requirement for both the Standard and Associate Programs.
For the Standard Program, the Minimum Sales Requirement has two parts: a Core Unit sales component and an "Aftermarket, labor, and parts" component, both assessed quarterly. Ninety percent of the Baseline for the Franchised Business must be met in Core Unit sales. The Baseline is defined as the greater of either 45 Core Units per quarter per Approved Location (excluding Licensed Outlets and Satellites) or the average quarterly Core Unit sales volume for the Franchised Business since the Approved Location first became part of a franchised business. Aerus will provide 90 days written notice before implementing the average quarterly Core Unit sales volume standard.
For the Associate Program, the Core Units sales requirement is 30 Core Units per quarter. Like the Standard Program, the Associate Program also has a separate "Aftermarket, labor, and parts" component to its Minimum Sales Requirement. 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 these Minimum Sales Requirements can result in the termination of the Franchise Agreement, so prospective franchisees should carefully consider these requirements and how they align with their business capabilities and market conditions. Aerus makes no guarantee that franchisees will achieve these minimum sales.