What documents are included in Exhibit 3 for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
I received a franchise disclosure document dated May 15, 2025 that included the following exhibits:
State Addenda (California, Illinois, Maryland, Minnesota, New York, North Dakota, South Dakota, Virginia, Washington, Wisconsin)
Exhibit 1 – Financial Statements
Exhibit 2(a) – Franchise Agreement (Standard Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(b) – Franchise Agreement (Associate Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(c) – Beyond Addendum
Exhibit 3 – Secured Promissory Note, Security Agreement and Guaranty
Source: Item 22 — Contracts (FDD page 74)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Exhibit 3 includes the Secured Promissory Note, Security Agreement, and Guaranty. These documents are relevant if Aerus or its affiliates offer financing to a franchisee. Item 10 of the FDD indicates that Aerus, though not obligated, may offer financing for initial fees, security deposits, accessories, parts and supplies, and the purchase of assets of an existing Aerus business.
The Secured Promissory Note is a formal agreement where the franchisee promises to repay a specific amount of money to Aerus or its affiliate, usually with interest, over a defined period. The Security Agreement gives Aerus a security interest in some of the franchisee's assets, which means Aerus can seize those assets if the franchisee fails to repay the loan. The Guaranty is a promise from another party (often a principal of the franchisee) to pay the franchisee's debt if the franchisee defaults.
Prospective Aerus franchisees should carefully review these documents with a legal and financial advisor if they plan to seek financing from Aerus. Understanding the terms of the Secured Promissory Note, the assets covered by the Security Agreement, and the obligations under the Guaranty is crucial to assessing the financial risks and obligations associated with the franchise.