Is a Security Agreement included as part of Exhibit 3 for Aerus franchisees?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
I received a franchise disclosure document dated May 15, 2025 that included the following exhibits:
State Addenda (California, Illinois, Maryland, Minnesota, New York, North Dakota, South Dakota, Virginia, Washington, Wisconsin)
Exhibit 1 – Financial Statements
Exhibit 2(a) – Franchise Agreement (Standard Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(b) – Franchise Agreement (Associate Program), Lease Rider, Software License Agreement and Consigned Products Security Agreement
Exhibit 2(c) – Beyond Addendum
Exhibit 3 – Secured Promissory Note, Security Agreement and Guaranty
Exhibit 4 – List of State Administrators
Exhibit 5 – List of Agents for Service of Process
Exhibit 6 – List of Aerus Businesses and List of Aerus Businesses Who Have Left the System
Exhibit 7 – Commitment Letter
Exhibit 8 – Manual Table of Contents
Source: Item 22 — Contracts (FDD page 74)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Exhibit 3 includes a Security Agreement. Specifically, Exhibit 3 contains the Secured Promissory Note, the Security Agreement, and a Guaranty. This implies that if Aerus provides financing to a franchisee, the franchisee will be required to sign a secured promissory note, which is part of Exhibit 3. The note will be guaranteed by the principals of the franchisee.
This is a standard practice in franchising when the franchisor provides financing. The security agreement protects Aerus's interest in the event that the franchisee defaults on their payment obligations. Prospective franchisees should carefully review the terms of the Security Agreement and understand the implications of providing a personal guaranty.
It is important for potential Aerus franchisees to seek legal and financial advice to fully understand the obligations and risks associated with signing a Secured Promissory Note, Security Agreement, and Guaranty.