What does the inventory collateral for an Aerus franchise include, without limitation?

According to Aerus's 2025 Franchise Disclosure Document, the collateral includes all present and future rights, titles, and interests of the franchisee in all inventory now owned or acquired in the future. This inventory encompasses, without limitation, all attachments, renewals, replacements, additions, accessories, increases, parts, substitutes, and proceeds from the aforementioned items. It also extends to all guarantees, claims, rights, remedies, and privileges associated with any of the foregoing.

This comprehensive definition of collateral means that Aerus retains a security interest in a broad range of assets related to the franchisee's inventory. This security interest protects Aerus's investment in the consigned products and ensures that Aerus has a priority claim over other creditors in the event of the franchisee's financial difficulties.

For a prospective Aerus franchisee, this implies that the inventory provided on consignment is not fully owned by the franchisee until it is sold, and Aerus maintains a secured interest in it. This arrangement is a risk mitigation strategy for Aerus, but it also means that the franchisee must diligently manage and account for the inventory to avoid any issues with Aerus's security interest. Franchisees should be aware of these conditions and ensure they understand their obligations regarding the consigned inventory and its proceeds.