What minimum balance must an Aerus franchisee maintain in its designated bank account?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. 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, franchisees must maintain a minimum balance in their designated bank account. The specific amount of this minimum balance is not detailed in Item 23 of the FDD. Instead, the FDD states that the minimum balance will be "in the amount specified in the Manuals."
This means that prospective Aerus franchisees will need to consult the Aerus operations manuals to determine the exact minimum balance required. This balance is important because Aerus has the option to withdraw funds from the franchisee's account to cover fees or other amounts owed to the company. Failing to maintain the required minimum could result in overdraft fees or other penalties from the bank, as well as potential repercussions from Aerus.
It is common practice for franchisors to require franchisees to maintain a certain balance, especially if electronic funds transfer is used for payments. This ensures that funds are available when Aerus needs to make a withdrawal. A prospective franchisee should ask Aerus about the specific amount of the minimum balance and the reasons for this requirement during their due diligence process. Understanding this obligation is crucial for managing the financial aspects of the franchise.