For Aerus franchisees in South Dakota, what is the condition for deferring initial fees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Aerus Franchising, LLC authorizes the respective state agencies identified on Exhibit 5 to receive service of process for it in the particular state.
I received a franchise disclosure document dated May 15, 2025 that included the following exhibits:
State Addenda (California, Illinois, Maryland, Minnesota, New York, North Dakota, South Dakota, Virginia, Washington, Wisconsin)
Exhibit 1 – Financial Statements
Exhibit 2(a) – Franchise Agreement (Standard Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(b) – Franchise Agreement (Associate Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(c) – Beyond Addendum
Exhibit 3 – Secured Promissory Note, Security Agreement and Guaranty
Exhibit 4 – List of State Administrators
Exhibit 5 – List of Agents for Service of Process
Exhibit 6 – List of Aerus Businesses and List of Aerus Businesses Who Have Left the System
Exhibit 7 – Commitment Letter
Exhibit 8 – Manual Table of Contents
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, Exhibit 7 lists the states that have addenda, including South Dakota. However, the document does not specify any conditions under which Aerus franchisees in South Dakota can defer initial fees. The standard process involves paying an initial franchise fee as detailed in Schedule 3, which is attached to the franchise agreement.
Since the FDD does not provide explicit details regarding the deferral of initial fees for Aerus franchisees in South Dakota, prospective franchisees should directly inquire with Aerus Franchising, LLC about any potential deferral programs or specific conditions that might apply. This information could be crucial in making an informed decision about investing in an Aerus franchise.
It is important to note that the FDD includes a commitment letter template (Exhibit 7) and mentions a "Good Faith Deposit" of $100, which is non-refundable but can be applied towards the initial franchise fee if the applicant is accepted and completes all conditions. However, this deposit is not related to deferring the initial franchise fee but rather a demonstration of commitment from the prospective franchisee.