What security is required for Aerus financing under the Standard or Associate Programs?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
from one to five years.
The following table summarizes the previous paragraph:
| Item Financed | Asset Purchase, Security Deposit, Initial Fees, Parts and Supplies |
|---|---|
| Initial Payment | At least $2,500 |
| Term (Yrs.) | 1 to 5 years |
| APR (%) | 0% to 7% (or the maximum rate permitted under applicable law, whichever is less) |
| Monthly Payment | Level payments based on an amount financed |
| Prepay Penalty | None, you may prepay all amounts owed without penalty |
| Security Required | Limited Personal Guaranty and perfected security interest in assets purchased under the Standard or Associate Programs. |
| Liability Upon Default | Accelerated balance, late fee equal to 5% of any overdue amount, termination of Franchise Agreement; interest, attorneys' fees and collection costs, foreclosure on secured assets |
| Loss of Legal Right On Default | Waive demand for payment, presentment, protest, notice of protest and non-payment, or other notice of de |
Source: Item 10 — Financing (FDD pages 34–36)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if you receive financing from Aerus under the Standard or Associate Programs, you must provide a Limited Personal Guaranty and a perfected security interest in the assets purchased. This means that you are personally guaranteeing the loan, and Aerus has a legal claim on the assets you purchase with the financing until the loan is repaid. This protects Aerus in case you default on the loan.
Additionally, you will be required to execute a Security Agreement and Guarantee, financing statement and any other related documents as necessary or reasonable to protect and perfect the interest of Aerus or its affiliate, as lender. This documentation further secures Aerus's financial interest in the financed assets and ensures their ability to recover those assets if you fail to meet your financial obligations.
It is important for prospective Aerus franchisees to carefully review the terms of the Limited Personal Guaranty, Security Agreement, and Note (secured promissory note) to fully understand their obligations and the potential consequences of default. Understanding the conditions under which Aerus can claim the secured assets is crucial for managing the financial risks associated with the franchise.