How does the initial franchise fee for Aerus (Item 5) compare to the 'Other Fees' that a franchisee might incur (Item 6)?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
In certain circumstances, we may reduce initial fees and finance initial fees for our existing franchisees, people working for our existing franchisees and franchisees opening or operating multiple locations. Last year, the initial fees ranged from approximately $5,000 to $16,000.
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.
If you are purchasing an existing Aerus Business from our affiliate, you will also enter into an asset purchase agreement on mutually acceptable terms. You will pay to our affiliate the negotiated purchase price for the assets of the business you will be acquiring. Under the Standard Program the purchase price for business assets generally range from $2,500 to $215,000 which includes (1) goodwill, including any phone numbers and pre-paid advertisements ($0 to $200,000) and (2) fair market value of furniture, fixtures and equipment ($2,500 to $15,000). Under the Associate Program the purchase price for business assets generally range from $2,000 to $30,000 which includes (1) goodwill, including any phone numbers and pre-paid advertisements ($0 to $25,000) and (2) fair market value of furniture, fixtures and equipment ($2,000 to $5,000).
BB. "Location Closure Fee" means a fee due by Franchisee with any closing of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
EE. "Minimum Local Advertising Expense" means the amount expended each year by Franchisee on local advertising, public relations, and promotion in the Area of Responsibility and specified in Schedule 3, attached hereto.
GG. "New Location Fee" means a fee due by Franchisee with any opening or acquisition of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
Upon the expiration of the Initial Term, Franchisee may renew the franchise for one (1) Renewal Term, provided Company is then offering new franchise rights for the establishment of Aerus Businesses in the State where the franchise subject to renewal is located and provided Franchisee meets all of the following conditions: (4) Franchisee executes Company's then-current form of franchise agreement, which, upon execution, will supersede this Agreement and which may differ from the terms of this Agreement, including, without limitation, the payment of higher or additional fees and revised Minimum Sales Requirements; (5) Franchisee pays Company a renewal fee of one hundred dollars ($100) (in lieu of paying an initial franchisee fee);
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the initial franchise fee can range from approximately $5,000 to $16,000. This fee is generally non-refundable and uniformly imposed, although Aerus may reduce or finance it for existing franchisees, their employees, or those opening multiple locations. Additionally, Aerus may require a $100 good faith deposit before sending the Franchise Agreement, which is applied to the initial franchise fee if the agreement is finalized. This deposit is refundable only if Aerus chooses not to enter into the agreement.
In addition to the initial franchise fee, franchisees may encounter other fees. If purchasing an existing Aerus business from an affiliate, the purchase price for assets can range from $2,500 to $215,000 under the Standard Program, including goodwill ($0 to $200,000) and furniture, fixtures, and equipment ($2,500 to $15,000). Under the Associate Program, asset purchase prices range from $2,000 to $30,000, including goodwill ($0 to $25,000) and furniture, fixtures, and equipment ($2,000 to $5,000). These asset costs can significantly exceed the initial franchise fee, especially under the Standard Program.
Other fees that a franchisee may incur include a Location Closure Fee and a New Location Fee, as well as Minimum Local Advertising Expenses. Furthermore, if a franchisee seeks to renew their franchise agreement, they may be subject to higher or additional fees and revised Minimum Sales Requirements in the then-current form of the franchise agreement. However, the renewal fee is $100 in lieu of paying an initial franchisee fee. These additional fees highlight that the initial franchise fee is only one component of the overall investment and ongoing costs associated with operating an Aerus franchise.