What must an Aerus franchisee remit to the company upon completion of a sale of any product?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- A. 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.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees are obligated to remit specific fees, payments, and deposits to the company. These remittances, referred to as "Payments," must be made in the amounts, at the times, and in the manner detailed within the Franchise Agreement, the Policies and Procedures, or the Manuals. It is crucial that these payments are made without any deductions or offsets. Aerus emphasizes that time is of the essence regarding all payments.
Failure to make timely payments to Aerus can result in financial penalties. The FDD states that all unpaid obligations will accrue interest from the due date until the date Aerus receives the payment. The interest rate is set at one and one-half percent (1.5%) per month, or the maximum rate permitted by applicable law, whichever is lower. This underscores the importance of franchisees maintaining diligent financial management to avoid incurring additional costs.
To ensure timely payments, Aerus offers an option for franchisees to authorize electronic funds transfers from their designated bank accounts. Aerus can withdraw funds in the amount of any Payment or other amounts due. Franchisees are required to maintain a minimum balance in their designated bank accounts, as specified in the Manuals. This automated payment option is designed to streamline the payment process and minimize the risk of late payments and associated interest charges.
In summary, an Aerus franchisee must remit all fees, payments, and deposits as outlined in the franchise agreement and related documents, adhering strictly to the specified amounts, timelines, and methods. Failure to comply with these payment obligations can lead to interest charges and potential complications with the franchisor.