What is the 'Relocation Fee' for an Aerus franchise, and when is it due?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Company may, from time to time, authorize certain other items to be excluded from Gross Sales. Any such permission may be revoked or withdrawn at any time in writing by Company at its option.
Y. "Initial Franchise Fee" means the fee payable by Franchisee to Company upon execution of this Agreement in an amount specified in Schedule 3, attached hereto.
- Z. "Initial Term" has the meaning assigned in Section 2.
- AA. "Licensed Outlet" has the meaning assigned in Section 1.C.
BB. "Location Closure Fee" means a fee due by Franchisee with any closing of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
CC. "Manuals" mean the confidential operations manuals, including the Policies and Procedures, and such other manuals and written materials (including electronically stored or communicated materials) that Company may develop or have developed for use in the operation of Aerus Businesses, including the Franchised Business (as the same may be revised by Company from time to time). The Manuals may contain mandatory and suggested specifications, standards and operating procedures that Company develops for the System and information relating to other obligations of Franchisee. Any required specifications, standards, and/or operating procedures exist to protect Company's interests in the System and the Marks and to create a uniform customer experience. They are not for the purpose of establishing any control or duty to take control over the day-to-day operational matters reserved to Franchisee.
- DD. "Marks" has the meaning assigned in Recitals A and C.
EE. "Minimum Local Advertising Expense" means the amount expended each year by Franchisee on local advertising, public relations, and promotion in the Area of Responsibility and specified in Schedule 3, attached hereto.
FF. "Minimum Sales Requirements" mean the requirements and minimum sales quantities more specifically described on Schedule 4, attached hereto.
GG. "New Location Fee" means a fee due by Franchisee with any opening or acquisition of an Aerus Business whether directly or indirectly made, attempted or completed in an amount specified in Schedule 3, attached hereto.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, there is no mention of a 'Relocation Fee'. However, the document does define and mention other fees, such as the 'Initial Franchise Fee,' which is payable upon the execution of the franchise agreement, and the 'Location Closure Fee,' which is due upon the closing of an Aerus business. There is also a 'New Location Fee' due upon the opening or acquisition of an Aerus business. All of these fees are specified in Schedule 3 of the franchise agreement.
Schedule 3, which is referenced for the amounts and terms of these fees, is not included in the provided excerpts. Without Schedule 3, it is impossible to determine if a 'Relocation Fee' exists, its amount, or when it is due. The agreement states that franchisees must pay all fees, payments, and deposits outlined in Schedule 3, the agreement itself, the Policies and Procedures, or the Manuals. Payments must be made on time without any deductions or offsets, and any unpaid obligations will accrue interest at 1.5% per month or the maximum rate allowed by law.
Prospective Aerus franchisees should carefully review Schedule 3 of the Franchise Agreement to understand all applicable fees, including any potential relocation fees. They should also inquire with the franchisor about any fees that are not explicitly listed but may be applicable under certain circumstances. Understanding the full scope of fees and payment terms is crucial for assessing the financial viability of the franchise.