Where are the Minimum Sales Requirements generally set forth for Aerus franchisees?
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 Requirements are generally set forth in Franchise Agreement Section 8.F. and Schedule 4. The document specifies that franchisees will be required to satisfy certain Minimum Sales Requirements, which are based in whole or in part upon the sale of Core Units. Core Units are defined as Products designated by Aerus in the Manuals.
The Minimum Sales Requirement for the Standard Program has two components: a Core Unit sales component and an "Aftermarket, labor, and parts" component, both assessed quarterly. For Core Units, the requirement is 90% of the Baseline, where the Baseline 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 for the Franchised Business since the Approved Location first became part of a franchised business. However, the latter standard will only apply after Aerus provides 90 days' written notice of its intention to implement it. For Aftermarket, labor, and parts, the requirement is 80% of the average Gross Sales per Approved Location of aftermarket, labor, and parts for all Approved Locations in the System for each quarter, excluding Satellites and Licensed Outlets.
The Minimum Sales Requirement for the Associate Program also has two components, assessed quarterly: a Core Unit sales component and an Aftermarket, labor, and parts component. The Core Units requirement is 30 Core Unit sales per quarter. The Aftermarket, labor, and parts requirement is 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 the franchisee is not required to maintain a service and repair center at their Approved Location.
The FDD emphasizes that failure to meet the Minimum Sales Requirement may result in the termination of the Franchise Agreement. It also clarifies that these requirements should not be interpreted as a guarantee of possible earnings, and Aerus makes no representation that franchisees will achieve them. This underscores the importance of carefully reviewing these requirements and assessing one's ability to meet them before investing in an Aerus franchise.