As the manufacturer of the machines, who is ultimately liable for any warranty claim and liability for Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Warranty claims exposure is considered to be a liability of Aerus, LLC, and no such warranty accrual is recorded on the Company. Aerus, LLC is the manufacturer of the machines and is ultimately liable for any warranty claim and liability.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus, LLC, as the manufacturer of the machines, is ultimately liable for any warranty claim and liability. The FDD specifies that warranty claims exposure is considered a liability of Aerus, LLC, and no such warranty accrual is recorded on Aerus Franchising, LLC's financial statements.
This means that if a customer has a warranty claim on an Aerus product, the responsibility for handling and covering the costs of that claim falls on Aerus, LLC, not the franchisee or Aerus Franchising, LLC. This arrangement can be beneficial for franchisees as it shields them from direct financial responsibility for product defects covered under warranty.
However, franchisees have a service requirement to honor and provide service in connection with any Company Consumer Warranty. If a franchisee does not have a service and repair center at their approved location, they must have a contractual agreement with another Aerus business to handle these warranty obligations. Franchisees are also prohibited from extending the Company Consumer Warranty or offering additional warranties beyond what Aerus provides.