How is the Standard Allocation for Aerus franchises determined, and how does sales volume affect the amount?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ich you license through your franchise. |
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $100 | Upon notification by you or your principals of their intent to transfer. | This fee is payable for any transfer of (i) all or any portion of an ownership interest in franchisee or (ii) an Approved Location. |
| Closure Fee | $100 | Upon notification by you of your request to close a location. | This fee is payable for any closed location under your franchise. |
| Renewal Fee | $100 | Upon notice of your intent to renew. | See Item 17. |
| Type Of Fee | Amount | Due Date | Remarks |
| Royalty | 8% of the Gross Sales (as defined below this table). Subject to increase upon 90 days' notice to you, provided that the Royalty will not exceed 12% of your monthly Gross Sales. | Monthly or more frequently as prescribed in the Manuals or otherwise in writing. | For purposes of calculating the royalty, Gross Sales will be determined according to the definition below this table, provided that the sum will be limited to the total selling price of (i) all services performed, (ii) certain service, labor and aftermarket parts, supplies and accessories (all as set forth in the Manuals) and (iii) the service component of all package sales involving both Consigned Product and service (as set forth in the Manuals). |
| Premises | Negotiated. | Monthly, prior to | Applies only when you purchase an |
| Sublease Rental | the 1st day of each | existing Aerus Business from us or our | |
| Fee | month. | affiliate. | |
| Contest Participation Fees | Our then-current fee, generally 50% of the actual costs or Standard Allocation for participants affiliated with the Franchised Business. | Upon receipt of invoice from us or as prescribed in the Manuals or otherwise in writing. | See Item 11. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the Standard Allocation is referenced within the context of Contest Participation Fees. The fee is generally 50% of the actual costs or the Standard Allocation for participants affiliated with the Franchised Business.
The amount of the Contest Participation Fees depends on the number of contest winners from a franchisee's business and could range from $0.00 to more than $5,000. This fee is due upon receipt of an invoice from Aerus or as prescribed in the Manuals or otherwise in writing.
Gross sales also affect other fees. Aerus franchisees must pay a minimum local advertising expense of at least 2% of gross sales. The royalty fee is 8% of gross sales, but may increase to a maximum of 12% with 90 days' notice.