What security is required by Aerus to obtain financing for 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 Aerus or its affiliates offer financing for the Standard or Associate Programs, the security required includes a Limited Personal Guaranty and a perfected security interest in the assets purchased under these programs. This means that in addition to the business assets themselves serving as collateral, the franchisee will also need to provide a personal guarantee, making them personally liable for the debt.
Aerus may offer financing for initial fees, security deposits, accessories, parts and supplies, and the purchase of assets of an existing Aerus business. The amount financed and the terms can vary based on the Aerus Business's performance, goodwill associated with the location, and the franchisee's creditworthiness. Franchisees should anticipate making an initial down payment ranging from approximately $2,500 to $50,000, with the balance paid in monthly installments.
If a franchisee defaults on their payment obligations, Aerus may terminate the Franchise Agreement. The franchisee will be required to sign a secured promissory note, which will be guaranteed by any principals of the Franchised Business. Additionally, franchisees will be required to execute a Security Agreement and Guarantee, financing statement, and any other related documents to protect Aerus's interest as the lender. The interest rate on the note will range from 0% to 7% per annum (or the maximum rate permitted by applicable law) with a term of one to five years.
Events of default under the note include failure to pay amounts within 5 days of the due date, fraud or misrepresentation, theft or conversion of assets, misuse of intellectual property, bankruptcy or insolvency, and default under any agreement with Aerus. These conditions are typical in franchise financing agreements, as they protect the franchisor's investment and brand integrity.