What initial down payment range does Aerus anticipate for franchisees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
cts sold, the goodwill associated with the location and your creditworthiness.
We anticipate that you will make an initial down payment ranging from approximately $2,500 to $50,000. The balance will be paid in equal monthly installments until paid in full or as we or our affiliates may otherwise determine. The debt may be pre-paid without penalty. If you default under your payment obligations, we may terminate the Franchise Agreement. If you finance any amount, you must sign a secured promissory note ("the Note") in the form attached to this Disclosure Document as part of Exhibit 3. The Note will be guaranteed by any principals of the
Franchised Business in the following cases: (i) fraud or misrepresentation in connection with the execution or performance of the Franchise Agreement, the Note or any other financing agreements; (ii) theft or conversion of the assets of us or any of the our affiliates including any consigned goods or proceeds from the sale of any consigned good (which may include selling such consigned goods at prices below the required prices); misuse or infringement of any trademark or other item of intellectual property or right owned or licensed by us or any of our affiliates; or (iii) breach or violation of any license granted under the Franchise Agreement concerning such trademarks and intellectual property. Additionally, you will be required to execute a Security Agreement and Guarantee (in the forms attached to this Disclosure Document as part of Exhibit 3), financing statement and any other related documents as necessary or reasonable to protect and perfect the interest of us or our affiliate, as lender. The Note will bear interest from 0% to 7% per annum (or the maximum rate permitted by applicable law, whichever is less) and will have a term ranging from one to five years.
Source: Item 10 — Financing (FDD pages 34–36)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the company anticipates that franchisees will make an initial down payment ranging from approximately $2,500 to $50,000 when financing certain aspects of the business. The balance of the financed amount will be paid in equal monthly installments until fully paid, or as otherwise determined by Aerus or its affiliates. Franchisees have the option to prepay the debt without incurring any penalties.
If a franchisee defaults on their payment obligations, Aerus reserves the right to terminate the Franchise Agreement. In the event that any amount is financed, the franchisee is required to sign a secured promissory note, which is included as part of Exhibit 3 in the Disclosure Document. This note will be guaranteed by the principals of the Franchised Business.
Furthermore, the table provided in Item 10 outlines specific terms related to financing. The initial payment is at least $2,500. The term for financing can range from 1 to 5 years, with an annual percentage rate (APR) between 0% and 7%, or the maximum rate permitted under applicable law, whichever is less. Monthly payments are structured as level payments based on the amount financed. Security required includes a limited personal guaranty and a perfected security interest in assets purchased under the Standard or Associate Programs.