What factors can cause the Security Deposit amount to increase for an Aerus franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Other Fees Under the Associate Program
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | As established by us in the Manuals or otherwise in writing. Amount will vary depending upon your sales volume. | Promptly upon sale. | You must remit to us or our Affiliate the Standard Allocation for the Consigned Products sold. You may be required to pay to us or our Affiliate, the full Standard Allocation, as if a sale had occurred for any Consigned Products held in your inventory for 90 days or longer. |
| Security Deposit | 88% of the Standard Allocation for all Consigned Products held in your inventory. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the amount of the security deposit required for Consigned Products may increase. The security deposit is 88% of the Standard Allocation for all Consigned Products held in the franchisee's inventory.
Two factors can cause the security deposit to increase. First, if the amount of Consigned Products held in the franchisee's inventory increases, the security deposit may be increased. Second, if the Standard Allocation for the Consigned Products increases, Aerus may require the franchisee to increase the amount of their security deposit.
This means that as an Aerus franchisee's business grows and they stock more Consigned Products, or if Aerus changes the Standard Allocation for those products, the franchisee should be prepared to increase their security deposit accordingly. This is an important consideration for managing cash flow and ensuring sufficient capital is available to meet Aerus's requirements.