What items can Aerus or its affiliates potentially offer financing for?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
8, 11, 12, 22 | |
Item 10
FINANCING
We are not obligated to offer financing to any franchisee. However, we or our affiliates may offer financing for (i) initial fees, (ii) Security Deposit, (iii) accessories, parts and supplies purchased from us or our affiliate, and (iv) the purchase of the assets of any existing Aerus Business that you may be acquiring from us or one of our affiliates. The amount financed and the terms of the financing will vary, based upon, among other things, the performance of the Aerus Business as measured by the number of Products sold, the goodwill associated with the location and your creditworthiness.
We anticipate that you will make an initial down payment ranging from approximately $2,500 to $50,000. The balance will be paid in equal monthly installments until paid in full or as we or our affiliates may otherwise determine. The debt may be pre-paid without penalty. If you default under your payment obligations, we may terminate the Franchise Agreement. If you finance any amount, you must sign a secured promissory note ("the Note") in the form attached to this Disclosure Document as part of Exhibit 3. The Note will be guaranteed by any principals of the
Franchised Business in the following cases: (i) fraud or misrepresentation in connection with the execution or performance of the Franchise Agreement, the Note or any other financing agreements; (ii) theft or conversion of the assets of us or any of the our affiliates including any consigned goods or proceeds from the sale of any consigned good (which may include selling such consigned goods at prices below the required prices); misuse or infringement of any trademark or other item of intellectual property or right owned or licensed by us or any of our affiliates; or (iii) breach or violation of any license granted under the Franchise Agreement concerning such trademarks and intellectual property. Additionally, you will be required to execute a Security Agreement and Guarantee (in the forms attached to this Disclosure Document as part of Exhibit 3), financing statement and any other related documents as necessary or reasonable to protect and perfect the interest of us or our affiliate, as lender. The Note will bear interest from 0% to 7% per annum (or the maximum rate permitted by applicable law, whichever is less) and will have a term ranging from one to five years.
The following table summarizes the previous paragraph:
| Item Financed | Asset Purchase, Security Deposit, Initial Fees, Parts and Supplies |
|---|---|
| Initial Payment | At least $2,500 |
| Term (Yrs.) | 1 to 5 years |
| APR (%) | 0% to 7% (or the maximum rate permitted under applicable law, whichever is less) |
| Monthly Payment | Level payments based on an amount financed |
| Prepay Penalty | None, you may prepay all amounts owed without penalty |
| Security Required | Limited Personal Guaranty and perfected security interest in assets purchased under the Standard or Associate Programs. |
| Liability Upon Default | Accelerated balance, late fee equal to 5% of any overdue amount, termination of Franchise Agreement; |
Source: Item 10 — Financing (FDD pages 34–36)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus or its affiliates are not obligated to offer financing to franchisees. However, they may offer financing for several items. These include initial fees, the security deposit, accessories, parts and supplies purchased from Aerus or its affiliates, and the purchase of assets of an existing Aerus business acquired from Aerus or one of its affiliates.
The amount financed and the terms of the financing will vary based on factors such as the performance of the Aerus business, goodwill associated with the location, and the franchisee's creditworthiness. Franchisees should anticipate making an initial down payment ranging from approximately $2,500 to $50,000, with the balance paid in equal monthly installments. Franchisees can prepay the debt without penalty. If a franchisee defaults on their payment obligations, Aerus may terminate the Franchise Agreement.
However, the inventory security deposit and initial franchise fee must be paid in cash in most cases, and neither Aerus nor its affiliates will finance these fees. If Aerus does provide financing, the franchisee must sign a secured promissory note, which is governed by Texas law. The interest rate on the note will range from 0% to 7% per annum, or the maximum rate permitted by applicable law, with a term of one to five years. Events of default under the note include failure to pay amounts within 5 days of the due date, fraud or misrepresentation, theft or conversion of assets, misuse of intellectual property, bankruptcy or insolvency, default under any Franchise Agreement, and default under any other agreement with Aerus or its affiliates.