Does Aerus provide any material benefits, such as renewal rights or additional franchises, to franchisees if they buy from sources Aerus approves?

According to Aerus's 2025 Franchise Disclosure Document, Aerus does not provide any material benefits, such as renewal rights or additional franchises, to franchisees who purchase from approved sources. This means that franchisees should not expect to receive any preferential treatment or advantages, like easier franchise renewal terms or opportunities to open additional locations, simply by complying with Aerus's supplier requirements.

Aerus has the right to mandate that franchisees purchase certain approved products and services from Aerus, its affiliates, or designated suppliers. These required purchases can include a wide range of items necessary for operating the franchise, such as products, inventory, supplies, advertising materials, computer hardware and software, and location décor. During the fiscal year ended December 31, 2024, Aerus realized approximately $14.41 million in revenue from these required purchases and leases by franchisees, which accounted for approximately 91% of Aerus's total revenue of approximately $15.83 million in 2024.

Aerus estimates that these required purchases and leases will constitute up to 90% of the franchisee's initial purchases and leases necessary to open the franchise and up to 80% of the ongoing costs to operate the franchise. While Aerus may negotiate purchasing arrangements with suppliers in the future, they do not currently have any purchasing or distribution cooperatives. Franchisees should be aware that a significant portion of their expenses will be directed toward these mandatory purchases from approved sources, without any additional benefits from Aerus in return.