Is the initial franchise fee for an Aerus franchise refundable?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as described above, initial fees are uniformly imposed and nonrefundable and we do not offer financing for the initial franchise fees.
We may require that you pay us a good faith deposit of $100, together with delivering to us a commitment letter, a sample of which is attached as Exhibit 7 to this Disclosure Document, before we will send an execution copy of the Franchise Agreement to you. The requirement of the $100 good faith deposit is dependent upon information disclosed to us in your application, such as work history, credit worthiness, previous franchise experience, references and/or previous work history with us or other Aerus franchisees. If we require the good faith deposit, it will be applied to the initial franchise fee and is only refundable if we choose not to enter into the Franchise Agreement with you.
For franchises in certain states (including Maryland, Minnesota, New York, Virginia and Washington), a good faith deposit is not required and the initial franchise fee will be deferred until your business is open and operational.
Source: Item 5 — Initial Fees (FDD pages 17–20)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. The FDD states that initial fees are uniformly imposed and nonrefundable, and Aerus does not offer financing for these fees. The initial franchise fee varies depending on the type of franchise an individual wishes to operate. For the Standard Program, the initial franchise fee is $3,000, while for the Associate Program, it is $1,000. There is also a $100 fee for the Beyond Addendum for both the Standard and Associate Programs.
However, there is an exception regarding a good faith deposit. Aerus may require a good faith deposit of $100 before sending an execution copy of the Franchise Agreement. This deposit is dependent on factors such as work history and creditworthiness. If required, this deposit is applied to the initial franchise fee and is refundable only if Aerus chooses not to enter into the Franchise Agreement with the prospective franchisee. Additionally, for franchises in certain states like Maryland, Minnesota, New York, Virginia, and Washington, a good faith deposit is not required, and the initial franchise fee is deferred until the business is open and operational.
It is important for prospective Aerus franchisees to understand these conditions regarding the refundability of fees. While the initial franchise fee itself is typically non-refundable, the good faith deposit offers a degree of protection if Aerus decides not to proceed with the agreement. Franchisees should also be aware of the state-specific exceptions that may apply to the good faith deposit and the timing of the initial franchise fee payment. Understanding these details can help franchisees make informed decisions and manage their initial investment effectively.