How is the Standard Allocation for Aerus franchises established?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
for such Consigned Products increases. |
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Shipping and Handling | Negotiated – Varies per shipment. | Payable directly by you to the third-party shipping company per their terms. | You may be required to use third party shipping companies designated by us. We currently do not charge handling fees. We reserve the right to institute such fees in the future. |
| Restocking Fee | 15% of Standard Allocation. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the term "Standard Allocation" is mentioned only in the context of the Restocking Fee. The FDD states that the Restocking Fee is 15% of the Standard Allocation. This fee is payable for all Consigned Products which a franchisee returns to Aerus or its affiliate, in accordance with the manuals. The fee amount will vary based upon the franchisee's Standard Allocation and the Consigned Product returned.
The FDD does not specify how the Standard Allocation itself is determined. It only indicates that the Restocking Fee is calculated as a percentage of it.
Therefore, a prospective Aerus franchisee should seek clarification from the franchisor regarding the specific factors and criteria used to establish the Standard Allocation for their franchise. Understanding how this allocation is determined is crucial, as it directly impacts the amount of the Restocking Fee that may be incurred.