What was the current portion of notes receivable for Aerus in 2023?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Notes receivable | $710,241 | $701,476 |
| Less allowance for credit losses | (677,266) | (570,045) |
| Notes receivable, net | 32,975 | 131,431 |
| Less current portion of notes receivable | (30,000) | (40,000) |
| Long-term portion of notes receivable | $2,975 | $91,431 |
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the current portion of notes receivable in 2023 was $40,000. This figure represents the amount of notes receivable that Aerus expects to collect within the next year. Notes receivable from franchisees typically bear interest from 7-10% per annum, have original terms of three to five years, and are unsecured.
For a prospective franchisee, understanding the current portion of notes receivable is important because it reflects the short-term financial obligations that franchisees have to Aerus. It also indicates the level of financial support Aerus provides to its franchisees through financing. The notes receivable from franchisees relates to sales of franchise rights to the Company's branch locations and certain branch assets to franchisees.
The FDD also indicates that in 2020, Aerus began financing notes to franchisees for fees paid to become a Beyond Franchise (entitles franchise to sell items not available to other franchises). For the year ended December 31, 2024 and 2023, $24,175 and $39,980 notes were financed by the Company, respectively. These notes do not bear interest.
It is important to note that these financial statements are unaudited, and prospective franchisees should be aware that no independent certified public accountant has audited these figures or expressed an opinion regarding their content or form.