What is the range for leasehold improvements costs for the Aerus Standard Program?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ASSOCIATE PROGRAMS)**
| Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made |
|---|---|---|---|---|---|
| Initial Franchise(1) Fee | $3,000 | $1,000 | Lump Sum | At Signing of Franchise Agreement | Us |
| Beyond Addendum(2) | $0 to $100 | $0 to $100 | Lump Sum | As Arranged | Us |
| Fee | |||||
| Leasehold | $0 to $15,000 | $0 to $5,000 | As Arranged | As Arranged | Other Supp |
Source: Item 7 — Estimated Initial Investment (FDD pages 27–29)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the estimated cost for leasehold improvements under the Standard Program ranges from $0 to $15,000. These costs are paid to other suppliers or contractors as arranged. Note 3 in Item 7 of the FDD clarifies that these costs can vary widely based on factors such as the site's condition and size, local labor costs, the location of the franchised business, and zoning requirements. The higher end of the estimate covers significant remodeling work, including walls, ceilings, floors, and electrical and carpentry work. The lower end assumes the leasehold is already in suitable operating condition or that the landlord will cover the improvement costs, amortizing them over the lease term.
For a prospective Aerus franchisee, this means that the financial outlay for leasehold improvements can be minimal if the leased space requires little to no modification. However, if substantial renovations are needed to meet Aerus's standards or to comply with local regulations, the costs can significantly increase. It is crucial for franchisees to thoroughly assess potential locations and understand the extent of required improvements before signing a lease. Negotiating with the landlord to cover some or all of the leasehold improvements can also help reduce the initial investment.
Given the wide range in estimated costs, it is advisable for potential Aerus franchisees to conduct thorough due diligence. This includes obtaining detailed quotes from local contractors, consulting with real estate professionals experienced in commercial leasing, and carefully reviewing the lease agreement to understand who is responsible for specific improvements. Understanding these costs upfront will allow for more accurate financial planning and potentially avoid unexpected expenses during the initial setup phase.