How is interest calculated on the Aerus Secured Promissory Note?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of, |
|---|
| Dallas, Texas |
| FOR VALUE RECEIVED, the undersigned,, a |
| ("Maker"), hereby [jointly, severally and] unconditionally promises to pay to the order of AERUS |
| FRANCHISING, LLC, a Delaware limited liability company ("Payee"), at 14841 Dallas Parkway, |
| Suite 500, Dallas, Texas 75254, or such other address as the holder hereof may, from time to time, |
| designate in writing, the principal sum of AND/100 DOLLARS |
| ($), in lawful money of the United States of America, together with interest on the |
| unpaid principal balance from day-to-day remaining, computed from the date of advance until |
| maturity at a rate per annum equal to percent (%) (the "Fixed Rate"). |
| Reference |
| is |
| hereby |
| made |
| to |
| that |
| certain |
| Franchise |
| Agreement |
| dated |
| by and between Maker and Payee ("Franchise Agreement"). |
| For purposes of calculating interest accrued hereon at the Fixed Rate, interest on this Note |
| shall be calculated on the basis of the actual days elapsed over a 360-day year. |
| Principal and accrued interest on this Note, computed as aforesaid, shall be due and payable |
| as follows: |
| (i) in equal monthly installments, each in the amount of |
| Dollars ($), commencing on, and continuing thereafter on |
| the first (1st) day of each succeeding calendar month, and (ii) in one final installment on |
| , 20, in the amount of the unpaid principal balance and accrued and unpaid |
| interest on this Note as of (and including) such date. |
| In addition to the foregoing required monthly payments, Maker shall pay to the Payee a |
| late charge of five percent (5%) of any monthly payment required to be made hereunder or under |
| the Security Agreement (as hereinafter defined) which is not received by the Payee within ten (10) |
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the interest on the Secured Promissory Note is calculated on the unpaid principal balance from day to day, starting from the date of advance until maturity, at a fixed rate per annum. The specific fixed rate is indicated as a percentage (%).
For the purpose of calculating accrued interest at the fixed rate, Aerus calculates interest based on the actual number of days elapsed over a 360-day year. The principal and accrued interest are due in equal monthly installments and a final installment on a specified date, which includes the unpaid principal balance and accrued unpaid interest as of that date.
In the event of late payments, Aerus may charge a late fee of 5% of the monthly payment if it is not received within ten days of the due date. Furthermore, if there is an event of default, the past due principal and interest will bear interest at a rate equal to the lesser of the maximum legal interest rate or 5% in excess of the fixed rate.