When is the Security Deposit due for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | The Standard Allocation is established by us (in the Manuals or otherwise in writing) and will vary based upon the franchise program you elect and 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. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the security deposit is due 'on demand.' The amount of the security deposit is 88% of the Standard Allocation for all Consigned Products held in your inventory. The amount will vary depending upon Consigned Products held in inventory and your sales volume.
This means that as an Aerus franchisee, you must be prepared to pay the security deposit when Aerus requests it. The amount is directly tied to the value of the consigned products you have in stock, so it can fluctuate.
Aerus may require you to increase the amount of your Security Deposit if the Consigned Products held in your inventory increases or if the Standard Allocation for such Consigned Products increases. This protects Aerus against potential losses if a franchisee fails to pay for the consigned products.