What is the range for the required inventory investment for an Aerus Standard Program?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
the Beyond Addendum.
Inventory
You will be required to maintain an inventory of Consigned Products and aftermarket and service parts. You will purchase the aftermarket and service parts from us, one of our affiliates, or designated suppliers. You will pay to us or one of our affiliates a Security Deposit equal to 88% of the total Standard Allocation for all Consigned Products provided to you. The Security Deposit is payable upon signing the Franchise Agreement, but generally collected prior to your receipt of the Consigned Products. The amount of the Security Deposit will vary, depending upon what Consigned Products are in your inventory and the Standard Allocation for such Consigned Products. The Standard Allocation is the amount you are required to remit to us or our affiliate
upon your sale of Consigned Products. The Standard Allocation is based upon your sales volume and whether you participate in the Standard Program or the Associate Program. The estimated range for aftermarket and service parts and the Security Deposit for Consigned Products is $15,000 to $90,000 under the Standard Program and $5,000 to
Source: Item 5 — Initial Fees (FDD pages 17–20)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees participating in the Standard Program can expect to invest between $15,000 and $90,000 in inventory. This investment covers both Consigned Products and aftermarket and service parts. Franchisees are required to purchase aftermarket and service parts from Aerus, its affiliates, or designated suppliers.
Specifically, a portion of this inventory investment is allocated to a Security Deposit for Consigned Products. Aerus requires a Security Deposit equal to 88% of the total Standard Allocation for all Consigned Products. This deposit is generally collected before the franchisee receives the Consigned Products and is payable upon signing the Franchise Agreement. The actual amount of the Security Deposit will fluctuate based on the specific Consigned Products in the franchisee's inventory and the Standard Allocation for those products.
The Standard Allocation is the amount the franchisee is required to remit to Aerus or its affiliate upon the sale of Consigned Products. This allocation is determined by the franchisee's sales volume and whether they participate in the Standard Program or the Associate Program. This means that as a franchisee's sales volume increases, the amount required for the security deposit may also increase to cover the increased inventory of Consigned Products.
Prospective franchisees should carefully consider these inventory requirements and the associated Security Deposit when evaluating the financial feasibility of an Aerus franchise. It is important to understand how the Standard Allocation works and how it will impact the overall investment and ongoing operational costs. Franchisees should also inquire about the specific types and quantities of Consigned Products they will be required to maintain in their inventory to accurately estimate the Security Deposit and total inventory investment.