How is the Restocking Fee for Aerus franchises calculated, and what is the relationship between the Standard Allocation and the Consigned Product returned?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | As established by us in the Manuals or otherwise in writing. Amount will vary depending upon your sales volume. | Promptly upon sale. | You must remit to us or our Affiliate the Standard Allocation for the Consigned Products sold. You may be required to pay to us or our Affiliate, the full Standard Allocation, as if a sale had occurred for any Consigned Products held in your inventory for 90 days or longer. |
| Security Deposit | 88% of the Standard Allocation for all Consigned Products held in your inventory. Amount will vary depending upon Consigned Products held in inventory and your sales volume. | On demand. | You may be required to increase the amount of your Security Deposit in the event the Consigned Products held in your inventory increases or in the event the Standard Allocation for such Consigned Products increases. |
| Shipping and Handling | Negotiated – Varies per shipment. | Payable directly by you to the third-party shipping company per their terms. | You may be required to use third party shipping companies designated by us. We currently do not charge handling fees. We reserve the right to institute such fees in the future. |
| Restocking Fee | 15% of Standard Allocation. | As prescribed in the Manuals or otherwise in writing. | Payable for all Consigned Products which you return to us or our affiliate in accordance with the Manuals Fee varies based upon your Standard Allocation and Consigned Product returned. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee will be charged a restocking fee for any consigned products returned to Aerus or its affiliate. This fee is calculated as 15% of the Standard Allocation. The amount of the restocking fee varies based on both the franchisee's Standard Allocation and the quantity of consigned products returned.
The Standard Allocation itself is established by Aerus and may be found in the manuals or in writing. The amount of the Standard Allocation will vary depending on the franchisee's sales volume. Franchisees are required to remit the Standard Allocation for the consigned products sold to Aerus or its affiliate.
This means that if an Aerus franchisee returns a significant amount of consigned product, they will incur a restocking fee proportional to the value of the returned goods, as determined by the Standard Allocation. It is important for prospective franchisees to understand how the Standard Allocation is determined for their specific sales volume and to carefully manage their inventory to minimize returns and associated restocking fees. Franchisees should consult the manuals and any written communications from Aerus to fully understand the terms and conditions related to consigned products and restocking fees.