How is the minimum security deposit determined for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ceipt of notice of such offset during the Term, Franchisee shall replenish the Security Deposit by an amount equal to such offset. Company need not maintain the Security Deposit in a separate account, and Company may co-mingle the Security Deposit with any of Company's accounts or funds. Franchisee will not be entitled to any interest on the Security Deposit. In addition to the foregoing, Franchisee shall from time to time during the term of this Agreement, at Company's request, pay to Company as an increase to the Security Deposit, an amount equal to the Standard Allocation of all Consigned Products which remain in Franchisee's inventory for ninety (90) days or longer.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the franchisee may be required to pay a security deposit. The amount of the security deposit can increase during the term of the agreement. Specifically, Aerus can request an increase to the security deposit equal to the standard allocation of all consigned products that remain in the franchisee's inventory for 90 days or longer. Aerus will refund these increases within 30 days after the franchisee provides satisfactory evidence of the sale of the consigned products.
Aerus is not required to maintain the security deposit in a separate account and may combine it with the company's other funds. The franchisee will not be entitled to any interest on the security deposit.
Prospective Aerus franchisees should carefully consider the implications of the security deposit requirements, including the potential for increases based on unsold consigned products and the lack of interest earned on the deposit. It is important to factor these costs into the overall financial planning for the franchise.