What is the Minimum Sales Requirement for Aerus franchisees based upon?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be required to satisfy and achieve certain Minimum Sales Requirements (the "Minimum Sales Requirement") which are generally set forth below and which are based in whole or in part upon the sale of Core Units (Franchise Agreement Section 8.F. and Schedule 4). "Core Units" are such Products as designated from time to time by us in the Manuals:
Minimum Sales Requirement (Standard Program): The Minimum Sales Requirement for the Standard Program has 2 components, a Core Unit sales component and an "Aftermarket, labor, and parts" component, both of which must be on a quarterly basis.
Core Units: Ninety Percent (90%) of the Baseline for the Franchised Business, where the "Baseline" for the Franchised Business is the greater of (i) a number of units equal to forty-five (45) Core Units per quarter per Approved Location (excluding Licensed Outlets and Satellites) or (ii) the average quarterly Core Unit sales volume for the Franchised Business since the Approved Location first became part of a franchised business; provided, however, that this standard in subparagraph (ii) will not apply unless and until we give ninety (90) days written notice of our intention to implement this standard.
Aftermarket, labor and parts: Eighty percent (80%) of the average Gross Sales per Approved Location of aftermarket, labor and parts for all Approved Locations in the System for each quarter; provided, however, that Satellites and Licensed Outlets will be excluded from any such determination and any such Gross Sales recorded for a Satellite or Licensed Outlet will be included with such Gross Sales of the Approved Location with which the Satellite or Licensed Outlet is affiliated.
Minimum Sales Requirement (Associate Program): The Minimum Sales Requirement for the Associate Program has 2 components, a Core Unit sales component and an "Aftermarket, labor, and parts" component, both of which must be on a quarterly basis.
Core Units: 30 Core Unit sales per quarter.
Aftermarket, labor and parts: Eighty percent (80%) of the average Gross Sales per Approved Location of aftermarket, labor and parts for all Approved Locations in the System for each quarter. However, there is no Minimum Sales Requirement for aftermarket, labor and parts under the Associate Program if you are not required to maintain a service and repair center at your Approved Location.
Failure to Meet Minimum Sales Requirements. If you fail to meet the Minimum Sales Requirement, we may terminate the Franchise Agreement. The Minimum Sales Requirements should not be construed as a representation of possible earnings. We make no representation that you will achieve the Minimum Sales Requirements.
Source: Item 12 — Territory (FDD pages 43–47)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Minimum Sales Requirement is based on two components: Core Unit sales and sales of "Aftermarket, labor, and parts," both assessed quarterly. The specifics differ based on whether the franchisee operates under the Standard Program or the Associate Program. Failing to meet these minimums could result in the termination of the Franchise Agreement. Aerus makes no guarantees that franchisees will meet these sales requirements.
For the Standard Program, the Core Units component is 90% of the Baseline, which is the greater of 45 Core Units per quarter per Approved Location (excluding Licensed Outlets and Satellites) or the average quarterly Core Unit sales volume since the Approved Location became part of a franchised business. The latter standard will only apply after Aerus provides 90 days' written notice. The Aftermarket, labor, and parts component is 80% of the average Gross Sales per Approved Location of aftermarket, labor, and parts for all Approved Locations in the System each quarter, excluding Satellites and Licensed Outlets.
For the Associate Program, the Core Units component is 30 Core Unit sales per quarter. The Aftermarket, labor, and parts component is 80% of the average Gross Sales per Approved Location of aftermarket, labor, and parts for all Approved Locations in the System each quarter. However, there is no Minimum Sales Requirement for aftermarket, labor, and parts under the Associate Program if the franchisee is not required to maintain a service and repair center at their Approved Location.
Prospective franchisees should carefully consider these requirements and how they align with their business plan and market conditions. Understanding the definitions of "Core Units," "Approved Location," "Licensed Outlets," and "Satellites" is crucial. Additionally, franchisees should assess the potential impact of the 90-day notice provision for the Standard Program, which could significantly alter the Core Unit sales requirement. The exclusion of Satellites and Licensed Outlets from certain calculations also warrants careful consideration, especially for franchisees planning to utilize these types of locations.