What is the significance of Aerus not offering financing to California franchises?

According to Aerus's 2025 Franchise Disclosure Document, Aerus does not offer financing to California franchises because the maximum interest rate in California is 10% annually. This suggests that Aerus's financing terms may exceed this limit in other states.

For a prospective franchisee in California, this means they will need to secure financing through alternative sources such as banks, credit unions, or private investors. This could potentially increase the difficulty of starting an Aerus franchise in California, as the franchisee would need to meet the lending requirements of a third-party financial institution, which may include providing collateral or a strong credit history.

This policy could also impact the overall cost of opening an Aerus franchise in California, as interest rates and loan terms from other lenders may be less favorable than what Aerus might offer in other states. Franchisees should carefully consider these factors and compare financing options to determine the most cost-effective solution for their situation.