When does Aerus generally disclose loss contingencies that are considered remote?

According to Aerus's 2025 Franchise Disclosure Document, loss contingencies that are considered remote are generally not disclosed in their financial statements. However, there is an exception to this rule. If the remote loss contingencies arise from guarantees, Aerus would disclose these guarantees in its financial statements.

This means that as a prospective Aerus franchisee, you should be aware that the financial statements may not reflect all potential losses the company could face. While remote contingencies are considered unlikely, guarantees represent a specific type of obligation that Aerus is willing to disclose even if the likelihood of a loss is low.

It is important for a potential franchisee to understand the nature of any guarantees Aerus has in place, as these could potentially impact the financial health of the company. This is a fairly standard accounting practice, as companies generally only disclose contingent liabilities that are probable or reasonably possible, with remote contingencies typically not warranting disclosure unless they involve guarantees or similar obligations.