What happens if an Aerus franchisee fails to meet the Minimum Sales Requirement?

According to Aerus's 2025 Franchise Disclosure Document, if a franchisee fails to meet the Minimum Sales Requirement, Aerus has the right to terminate the Franchise Agreement. The FDD emphasizes that these Minimum Sales Requirements should not be interpreted as a guarantee of potential earnings, and Aerus makes no assurances that a franchisee will achieve them. This applies to both the Standard and Associate Programs.

The Minimum Sales Requirement for both the Standard and Associate Programs has two components that must be met on a quarterly basis: Core Unit sales and "Aftermarket, labor, and parts" sales. For the Standard Program, the Core Units component is 90% of the Baseline, which is the greater of 45 Core Units per quarter per Approved Location or the average quarterly Core Unit sales volume since the Approved Location first became part of a franchised business. For the Associate Program, the Core Units component is 30 Core Unit sales per quarter. The "Aftermarket, labor, and parts" component is 80% of the average Gross Sales per Approved Location of aftermarket, labor, and parts for all Approved Locations in the System for each quarter for both programs. However, under the Associate Program, there is no Minimum Sales Requirement for aftermarket, labor, and parts if you are not required to maintain a service and repair center at your Approved Location.

This policy highlights the importance of meeting sales targets to maintain the franchise agreement with Aerus. Prospective franchisees should carefully consider the Minimum Sales Requirements for their chosen program (Standard or Associate) and assess their ability to meet these targets based on their market conditions and business capabilities. The risk of termination for failing to meet these requirements underscores the need for a solid business plan and effective sales strategies.