From whom must an Aerus franchisee obtain spare parts?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ome tax expense | $100,683 | $52,257 | | Deferred tax provision | (61,707) | (16,519) | | | $38,976 | $35,738 |
Notes to Financial Statements December 31, 2024
Note 1 – Organization
Organization and Nature of Operations
Aerus Franchising, LLC (the "Company" (a Delaware limited liability company), was formed on May 2, 2001 for the purpose of franchising certain former branch locations of Aerus, LLC. The Company is owned 99% by Aerus, LLC with the other 1% owned by members of Aerus, LLC management.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
The 2025 Aerus Franchise Disclosure Document states that Aerus franchisees primarily purchase products from Aerus, LLC. Specifically, the document notes that revenue from the sale of parts is recognized upon shipment to franchisees. This indicates that franchisees are expected to source their spare parts directly from Aerus, LLC.
This arrangement ensures that Aerus maintains control over the quality and consistency of the parts used in its franchised businesses. By requiring franchisees to purchase parts from a designated source, Aerus can ensure that the parts meet the company's standards and are compatible with its products. This can help to protect the brand's reputation and maintain customer satisfaction.
For a prospective franchisee, this means they will need to factor in the cost of purchasing spare parts from Aerus, LLC when assessing the financial viability of the franchise. It also means they will be dependent on Aerus, LLC for the timely supply of these parts. Any delays or disruptions in the supply chain could potentially impact the franchisee's ability to provide service and repairs to customers, which could negatively affect their business.