factual

Can Aerus impose a minimum or fixed royalty amount?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

Company reserves the right to provide new products and services under the System, and to require or permit new products and services to be provided, marketed, promoted, distributed or sold hereunder by Franchisee through the Franchised Business, and may, in connection therewith, without limitation (1) require Franchisee to execute an additional or supplemental agreement and (2) require the payment of a royalty.

Source: Item 23 — Receipts (FDD pages 74–305)

What This Means (2025 FDD)

Based on the 2025 Aerus Franchise Disclosure Document, Aerus retains the right to introduce new products and services within the System. As part of this, Aerus can require franchisees to offer these new products and services through their franchised business.

Specifically, Aerus may require franchisees to execute additional or supplemental agreements related to these new offerings. Critically, the FDD states that Aerus may also require the payment of a royalty in connection with these new products or services.

This means that while the standard royalty structure might be defined elsewhere in the FDD, Aerus has the explicit right to impose additional royalty obligations on franchisees for new products and services introduced to the Aerus system. Prospective franchisees should carefully consider this when evaluating the potential costs and profitability of an Aerus franchise, as these additional royalties could impact their financial performance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.