For Aerus franchisees in Maryland, until what point are initial fees deferred?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5 of the Disclosure Document is amended as follows:
Based upon the Franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the Franchisor completes its pre-opening obligations under the Franchise Agreement and the outlet is opened.
For Franchisees in Maryland, any initial fees will be deferred until the Franchisor has completed its pre-opening obligations and the outlet is opened.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a Maryland addendum addresses the deferral of initial fees for franchisees in that state. Due to the Maryland Securities Commissioner requiring a financial assurance based on Aerus's financial condition, all initial fees and payments owed by franchisees in Maryland are deferred. This deferral lasts until Aerus completes its pre-opening obligations under the Franchise Agreement and the outlet is opened.
This means that prospective Aerus franchisees in Maryland will not have to pay the initial franchise fee upfront. Instead, they can delay payment until Aerus fulfills its responsibilities in preparing the franchisee to open their business. This could significantly reduce the initial financial burden on new franchisees, allowing them to allocate those funds to other startup costs.
It is important for potential franchisees to understand exactly what Aerus's pre-opening obligations are, as outlined in the Franchise Agreement. Franchisees should also confirm with Aerus what documentation or confirmation they will receive once these obligations are met and the initial fees become due. This deferral is a benefit to franchisees in Maryland, providing a degree of financial security during the initial setup phase of the business.