What sections of the Aerus Franchise Agreement and Business Agreement address the fees franchisees must pay?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay to Company all fees, payments and deposits set forth in Schedule 3 attached hereto and required elsewhere in this Agreement (the remittance of each, a "Payment") in the amounts, at the time, and in the manner described in this Agreement or the Policies and Procedures or elsewhere in the Manuals. Each Payment to be made to Company must be made free and clear at the time, and in the manner, specified in this Agreement, without deduction or offset. TIME IS OF THE ESSENCE with respect to all Payments to be made. All unpaid obligations under this Agreement will bear interest from the date due until the date of receipt by Company, at one and one-half percent (1.5%) per month, or the maximum rate allowed by applicable law, whichever is less.
- A. At Company's option, Company may withdraw funds from Franchisee's designated bank account by electronic funds transfer or comparable method in the amount of any Payment or any other amounts due hereunder to Company and for all subsequent payments due to Company, as further described in the Manuals or otherwise in writing. Franchisee shall at all times maintain in its designated bank account a minimum balance in the amount specified in the Manuals.
Source: Item 9 — Franchisee's Obligations (FDD pages 33–34)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, several sections within the Franchise Agreement and Business Agreement outline the fees franchisees are obligated to pay. Schedule 3 of the Franchise Agreement is a key area, as it specifies amounts for various fees, including the Initial Franchise Fee, Location Closure Fee, New Location Fee, and the Administration and Technical Support Fee.
Item 23 of the FDD, which defines various terms, references Schedule 3 for the specific amounts of the Initial Franchise Fee, Location Closure Fee, Minimum Local Advertising Expense, and New Location Fee. Additionally, Section 7 of the Franchise Agreement details that franchisees must pay all fees, payments, and deposits as outlined in Schedule 3 and elsewhere in the agreement or the Manuals. These payments must be made without deduction or offset, and time is of the essence.
Furthermore, the Administration and Technical Support Fee, paid by the franchisee to Aerus for administrative and technical support services, is also specified in Schedule 3. Understanding these sections is crucial for prospective franchisees to fully grasp the financial commitments involved in operating an Aerus franchise.