Regarding debits, what losses must an Aerus depositor indemnify the Depository from?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
The Depositor agrees with respect to any action taken pursuant to the above authorization:
- (1) To indemnify the Depository and hold it harmless from any loss it may suffer resulting from or in connection with any debit, including, without limitation, execution and issuance of any check, draft or order, whether or not genuine, purporting to be authorized or executed by the Payee and received by the Depository in the regular course of business for the purpose of payment, including any expenses reasonably incurred in connection therewith.
- (2) To indemnify Payee and the Depository for any loss arising in the event that any such debit shall be dishonored, whether with or without cause and whether intentionally or inadvertently.
- (3) To defend at Depositor's own expense any action which might be brought by a depositor or any other persons because of any actions taken by the Depository or Payee pursuant to the foregoing request and authorization, or in any manner arising by reason of the Depository's or Payee's participation therein.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, as part of the Electronic Funds Transfer Authorization, the franchisee (referred to as the Depositor) agrees to indemnify the Depository (typically a bank or financial institution) against certain losses related to debits made to their account for payments to Aerus Franchising, LLC. This means the franchisee is responsible for protecting the Depository from financial harm in specific situations.
The franchisee must indemnify the Depository and hold it harmless from any loss suffered resulting from or connected to any debit. This includes, without limitation, the execution and issuance of any check, draft, or order, whether or not genuine, that appears to be authorized or executed by Aerus Franchising, LLC (the Payee) and is received by the Depository in the regular course of business for payment purposes, including any expenses reasonably incurred in connection with such debits.
Furthermore, the franchisee is obligated to indemnify both Aerus (the Payee) and the Depository for any loss that arises if any debit is dishonored, regardless of the reason for the dishonor (whether with or without cause, and whether intentional or inadvertent). The franchisee is also responsible for defending, at their own expense, any legal action brought by a depositor or other persons due to actions taken by the Depository or Aerus pursuant to the authorization, or in any way arising from the Depository's or Aerus's participation in the electronic funds transfer arrangement.