What is the relationship between the good faith deposit for an Aerus franchise (Item 5) and the definition of 'You' as the franchisee (Item 1)?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require that you pay us a good faith deposit of $100, together with delivering to us a commitment letter, a sample of which is attached as Exhibit 7 to this Disclosure Document, before we will send an execution copy of the Franchise Agreement to you. The requirement of the $100 good faith deposit is dependent upon information disclosed to us in your application, such as work history, credit worthiness, previous franchise experience, references and/or previous work history with us or other Aerus franchisees. If we require the good faith deposit, it will be applied to the initial franchise fee and is only refundable if we choose not to enter into the Franchise Agreement with you. You must pay us the following non-refundable initial franchise fee at the time you sign
a Franchise Agreement, which will vary depending on the type of Franchised Business you wish to operate:
Aerus Franchising, LLC 14841 Dallas Parkway, Suite 500 Dallas, Texas 75254
Attention: Franchising—Legal Department
Re: Commitment Letter and Good Faith Deposit ____________________ (Location)
Dear Aerus Franchising:
After reviewing the Franchise Disclosure Document and considering the terms and conditions of being an Aerus Franchisee (an "Aerus Franchisee"), I am writing to express my interest in and commitment to becoming an Aerus Franchisee and, if applicable, acquiring the business assets (the "Assets") of the existing Aerus business location identified above. I have completed my independent research of the Aerus Franchising opportunity and would like to be considered for the awarding of an Aerus Franchise (an "Aerus Franchise").
Included with this commitment letter is my non-refundable and non-transferable $100.00 "Good Faith Deposit." Although the deposit is non-refundable and non-transferable concerning my commitment hereunder, I understand the deposit is fully refundable if you do not confirm me as an Aerus Franchisee. I also understand that if I am accepted by you as an Aerus Franchise and successfully complete all of the conditions, including attending the required training program, the deposit will be applied at closing toward either my down payment for the Assets or the Initial Franchise Fee. The deposit is not otherwise refundable and will not otherwise be applied to any payments.
This commitment letter represents my commitment to becoming an Aerus Franchisee upon the execution and acceptance by you of all necessary documents and my full satisfaction of all other conditions. I realize that this commitment letter does not require me to become an Aerus Franchisee, does not constitute an offer for an Aerus Franchise or otherwise obligate Aerus to grant me a franchise and does not convey to me any rights with respect to Aerus or an Aerus Franchise.
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the good faith deposit of $100 is related to the franchisee's commitment to becoming an Aerus franchisee. Item 5 specifies the conditions under which Aerus may require a good faith deposit, while Item 23 provides a sample commitment letter outlining the franchisee's intent. Item 1 defines Aerus LLC as the franchisor. However, the FDD does not explicitly define "you" as the franchisee. Instead, it focuses on the franchisor's identity and structure.
The good faith deposit is contingent upon information disclosed in the franchisee's application, such as work history, creditworthiness, previous franchise experience, references, or prior work history with Aerus. If required, the $100 deposit is applied to the initial franchise fee and is refundable only if Aerus chooses not to enter into the Franchise Agreement. The commitment letter included with the deposit expresses the applicant's interest in becoming an Aerus franchisee and their commitment to acquiring the assets of an existing Aerus business location, if applicable.
While the commitment letter represents the applicant's commitment, it does not obligate them to become a franchisee, nor does it obligate Aerus to grant a franchise. The deposit is non-refundable and non-transferable concerning the applicant's commitment but is fully refundable if Aerus does not confirm them as a franchisee. If accepted and all conditions are met, including attending the required training program, the deposit will be applied towards the down payment for assets or the initial franchise fee.
Prospective franchisees should note that the FDD does not provide a specific definition of "you" as the franchisee. To fully understand the legal obligations and expectations of the franchisee, it is crucial to carefully review the entire Franchise Agreement and related documents. Franchisees should seek clarification from Aerus regarding any ambiguities or undefined terms to ensure a clear understanding of their rights and responsibilities.