What interest rate will Aerus charge on unpaid obligations?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Company all fees, payments and deposits set forth in Schedule 3 attached hereto and required elsewhere in this Agreement (the remittance of each, a "Payment") in the amounts, at the time, and in the manner described in this Agreement or the Policies and Procedures or elsewhere in the Manuals. Each Payment to be made to Company must be made free and clear at the time, and in the manner, specified in this Agreement, without deduction or offset. TIME IS OF THE ESSENCE with respect to all Payments to be made. All unpaid obligations under this Agreement will bear interest from the date due until the date of receipt by Company, at one and one-half percent (1.5%) per month, or the maximum rate allowed by applicable law, whichever is less.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees will be charged interest on all unpaid obligations under the franchise agreement. The interest rate is 1.5% per month, which equates to an annual interest rate of 18%. However, the agreement specifies that if applicable law sets a maximum rate lower than 1.5% per month, the legal maximum will apply instead.
This means that if a franchisee fails to make payments on time, Aerus has the right to charge interest on the outstanding balance. This applies to all fees, payments, and deposits outlined in Schedule 3 of the agreement, as well as any other amounts due to Aerus. The interest accrues from the date the payment was originally due until Aerus receives the payment.
Aerus also has the option to withdraw funds directly from the franchisee's designated bank account to cover any payments or amounts owed. Franchisees are required to maintain a minimum balance in their designated bank account as specified in the manuals. This ensures that Aerus can collect payments efficiently and address any unpaid obligations promptly.
Prospective franchisees should be aware of these terms and ensure they understand their payment obligations to avoid incurring interest charges. It is also important to be aware of any applicable state laws that may limit the interest rate Aerus can charge.