Is an Aerus franchisee required to use specific shipping companies?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. Amount will vary depending upon Consigned Products held in inventory and your sales volume. | On demand. | You may be required to increase the amount of your Security Deposit in the event the Consigned Products held in your inventory increases or in the event the Standard Allocation for such Consigned Products increases. |
| Shipping and Handling | Negotiated – Varies per shipment. | Payable directly by you to the third-party shipping company per their terms. | You may be required to use third party shipping companies designated by us. We currently do not charge handling fees. We reserve the right to institute such fees in the future. |
| Restocking Fee | 15% of Standard Allocation. | As prescribed in the Manuals or otherwise in writing. | Payable for all Consigned Products which you return to us or our affiliate in accordance with the Manuals Fee varies based upon your Standard Allocation and Consigned Product returned. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees may be required to use specific third-party shipping companies designated by Aerus. The cost for shipping and handling is negotiated and varies per shipment. The franchisee is responsible for paying the shipping company directly based on their terms.
This requirement means that an Aerus franchisee might not be able to choose the shipping company they prefer or negotiate rates independently. While the FDD states that shipping and handling fees are negotiated, the franchisee's negotiation power may be limited if they are required to use a specific company. This could potentially impact the franchisee's overall costs and operational flexibility.
It is common in franchising for franchisors to designate specific suppliers or vendors to maintain quality control and ensure brand consistency. However, franchisees should carefully consider the potential impact on their expenses and ability to manage their shipping logistics efficiently. Prospective Aerus franchisees should inquire about the list of approved shipping companies, typical shipping costs, and the process for negotiating rates to fully understand the implications of this requirement.