What factors determine the value of goodwill when purchasing an existing Aerus business?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Inventory (Standard Program) | $15,000 to $90,000 | |---|---| | Inventory (Associate Program) | $5,000 to $20,000 | | Goodwill (Standard Program) | 0 to $200,000 | | Goodwill (Associate Program) | 0 to $25,000 | | Furniture, Fixtures, and Equipment (Standard | $2,500 to $15,000 | | Program) | | | Furniture, Fixtures, and Equipment (Associate | $2,000 to $5,000 | | Program) | | If you are purchasing an existing Aerus Business from our affiliate, you will also enter into an asset purchase agreement on mutually acceptable terms. You will pay to our affiliate the negotiated purchase price for the assets of the business you will be acquiring. Under the Standard Program the purchase price for business assets generally range from $2,500 to $215,000 which includes (1) goodwill, including any phone numbers and pre-paid advertisements ($0 to $200,000) and (2) fair market value of furniture, fixtures and equipment ($2,500 to $15,000). Under the Associate Program the purchase price for business assets generally range from $2,000 to $30,000 which includes (1) goodwill, including any phone numbers and pre-paid advertisements ($0 to $25,000) and (2) fair market value of furniture, fixtures and equipment ($2,000 to $5,000). The value of goodwill depends on such factors as the geographic location of the Aerus Business, the amount of time the Aerus Business has existed in its general location and the number of cust
Source: Item 5 — Initial Fees (FDD pages 17–20)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the value of goodwill when purchasing an existing Aerus business from an affiliate is influenced by several factors. These factors include the geographic location of the Aerus business, the length of time the Aerus business has been operating in its location, and the number of customers the Aerus business services. Goodwill is included as part of the overall purchase price for the business assets.
The purchase price for business assets under the Standard Program generally ranges from $2,500 to $215,000, which includes goodwill valued between $0 and $200,000, as well as the fair market value of furniture, fixtures, and equipment ranging from $2,500 to $15,000. For the Associate Program, the purchase price for business assets typically ranges from $2,000 to $30,000, including goodwill valued between $0 and $25,000, and furniture, fixtures, and equipment valued between $2,000 and $5,000.
Prospective franchisees should consider these factors when evaluating the purchase price of an existing Aerus business. A prime location, a long-established business, and a large customer base will likely command a higher goodwill value, and consequently, a higher overall purchase price. It is important to conduct thorough due diligence to assess the accuracy of the customer base and the condition of the assets to ensure the asking price aligns with the actual value of the business.