Does the late charge for Aerus apply to payments required under the Security Agreement?
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, a late charge does apply to payments required under the Security Agreement. Specifically, if a monthly payment required under the Note or the Security Agreement is not received by Aerus within ten days, a late fee of five percent (5%) of the payment will be charged.
This means that if an Aerus franchisee is late on a payment related to either the promissory note or the security agreement, they will incur an additional charge of 5% of the overdue amount. For example, if a franchisee's monthly payment is $1,000 and it is received 11 days after the due date, a late fee of $50 (5% of $1,000) will be added to the next payment.
Franchisees should ensure timely payments to avoid these late charges, as they can add up over time and increase the overall cost of the franchise. It is important to note the specific terms and conditions outlined in both the promissory note and the Security Agreement to fully understand the payment obligations and potential penalties for late payments.