Who is responsible for paying taxes and registration fees arising from the Aerus software license?

According to Aerus's 2025 Franchise Disclosure Document, the franchisee, referred to as the Licensee, is responsible for paying specific taxes and registration fees associated with the software license. This includes sales, use, ad valorem, personal property, and general intangibles taxes, as well as any registration fees that arise from the software license agreement and related transactions. However, the franchisee is not responsible for taxes imposed on Aerus's gross income. This allocation of tax responsibilities is a standard practice in franchising, where the franchisee typically bears the burden of taxes directly related to their operation and use of licensed software.

In practical terms, this means that an Aerus franchisee needs to budget for these taxes and fees when planning their business expenses. They should consult with a tax advisor to understand the specific tax implications in their jurisdiction and ensure compliance with all applicable tax laws. Failing to pay these taxes and fees could result in penalties and legal issues, which would negatively impact the franchisee's business.

Furthermore, the franchisee is also responsible for all hardware, operating systems, other software, and peripherals required for the Aerus software to operate correctly. This includes the costs associated with a personal computer and a compatible operating system, as well as any internet or telecommunication connections needed to connect to a remote computer designated or approved by Aerus. Therefore, the franchisee should consider these costs when evaluating the overall investment required to start and operate an Aerus franchise.