What is the interest rate charged on overdue or understated payments to Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
s 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.
- B. At Company's option, Company may withdraw funds from Franchisee's designated bank account by electronic funds transfer or comparable method in the amount of any Payment or any other amounts due hereunder to Company and for all subsequent payments due to Company, as further described in the Manuals or otherwise in writing. Franchisee shall at all times maintain in its designated bank account a minimum balance in the amount specified in the Manuals.
-
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, there are multiple interest rates that may be applied to overdue or understated payments, depending on the type of payment and the specific agreement. For all unpaid obligations under the Franchise Agreement, Aerus charges interest from the date the payment is due until it is received at a rate of 1.5% per month, or the maximum rate allowed by applicable law, whichever is less.
Additionally, if a franchisee understates any report or submission to Aerus, they must immediately pay the amount overdue or understated upon demand. This payment includes interest from the due date of the payment, report, or submission date of the understatement at a rate of 18% per year, or the highest amount allowed under applicable law.
Furthermore, after an Event of Default, all past due principal and interest on a note will bear interest at the lesser of (i) the Maximum Rate, or (ii) the rate per annum which shall from day-to-day be equal to five percent (5%) in excess of the Fixed Rate.