Does the Aerus franchise agreement allow for electronic funds transfer for payments?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ach continues.3 The parties agree that the foregoing amount is a reasonable estimation of the damages that would be incurred by Company for breach of the covenants provided for in this Section.
7. Fees, Payments and Deposits.
A. Franchisee shall pay to Company all fees, payments and deposits set forth in Schedule 3 attached hereto and required elsewhere in this Agreement (the remittance of each, a "Payment") in the amounts, at the time, and in the manner described in this Agreement or the Policies and Procedures or elsewhere in the Manuals. Each Payment to be made to Company must be made free and clear at the time, and in the manner, specified in this Agreement, without deduction or offset. TIME IS OF THE ESSENCE with respect to all Payments to be made. All unpaid obligations under this Agreement will bear interest from the date due until the date of receipt by Company, at one and one-half percent (1.5%) per month, or the maximum rate allowed by applicable law, whichever is less.
- B. At Company's option, Company may withdraw funds from Franchisee's designated bank account by electronic funds transfer or comparable method in the amount of any Payment or any other amounts due hereunder to Company and for all subsequent payments due to Company, as further described in the Manuals or otherwise in writing. Franchisee shall at all times maintain in its designated bank account a minimum balance in the amount specified in the Manuals.
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- Standard of Conduct. Franchisee shall use its best efforts to develop a sales organization to sell and increase sales of, and to legitimately and ethically advertise, market, promote, distribute and sell Products to Approved Customers within the Area of Responsibility by means of in-the-home and in-person demonstrations or otherwise in accordance with the Manuals. Such efforts shall always be conducted pursuant to the terms and conditions of this Agreement, shall comply with the Manuals, including the Policies and Procedures, and shall promote and
3 This liquidated damages clause does not apply to franchises in the State of Minnesota or the State of North Dakota.
demonstrate Company's standards of high quality and reputation. In connection with the foregoing, Franchisee shall be obligated, at a minimum, to:
- A. Maintain an Approved Location in a condition acceptable to, and at standards established by, Company (including opening any Approved Location to the public and engaging Sales Representatives to schedule and perform product demonstrations and sales activities within the Area of Responsibility during the operating hours set forth by Company from time to time in the Manuals), which is adequate for reasonable inventory needs, equipped with communication devices (including personal computers) adequate for operating FOAS and receiving and sending communications from and to Company, is attractive, clean, orderly and sanitary, and has all of its fixtures and furnishings in good order and repair.
- B. Purchase or lease, install and maintain at Franchisee's expense, all fixtures, furnishings, equipment (including electronic cash register or computer hardware and Software and Administration Systems and satellite communications systems), decor items, signs, and related items as Company may reasonably require from time to time in the Manuals or otherwise in writing;
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus franchisees may be required to make payments to the company for fees, payments, and deposits as outlined in Schedule 3 of the franchise agreement. Aerus has the option to withdraw funds from the franchisee's designated bank account through electronic funds transfer or a similar method for any payments owed. The specific details of this process are further described in the manuals or in writing.
As part of the electronic funds transfer authorization, the franchisee authorizes their designated depository to honor and charge their account for electronic debits payable to Aerus Franchising, LLC. The depository's rights regarding these debits are the same as if they were checks signed by the franchisee. The authorization remains in effect until the depository and Aerus receive at least 30 days' written notification of termination from the franchisee.
The franchisee agrees to indemnify the depository and Aerus for any losses resulting from any debit, including expenses related to checks or orders authorized by Aerus. They also agree to cover any losses if a debit is dishonored, regardless of the reason. Additionally, the franchisee is responsible for defending any legal actions brought by a depositor or other persons due to actions taken by the depository or Aerus under the authorization.
This arrangement benefits Aerus by ensuring timely and reliable payments, while it requires the franchisee to maintain sufficient funds in their designated account and to accept responsibility for any issues arising from the electronic funds transfer process. Prospective franchisees should carefully review the manuals and any additional written documentation to fully understand the terms and conditions of the electronic funds transfer authorization and their obligations.