How is the Standard Allocation for Aerus franchises established, and on what factors does it vary?
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 referenced in the context of the Restocking Fee. The restock fee is 15% of the Standard Allocation. This fee is charged for all Consigned Products that a franchisee returns to Aerus or its affiliate, as detailed in the manuals. The amount of the fee varies based on both the franchisee's Standard Allocation and the value of the Consigned Product returned.
However, the FDD does not explicitly define how the Standard Allocation itself is determined or what factors influence its size. The Standard Allocation seems to be a baseline or quota of products assigned to a franchisee, but the document does not specify the criteria used to set this allocation.
A prospective Aerus franchisee should seek clarification from the franchisor regarding the specific methodology used to calculate the Standard Allocation. Understanding the factors that influence the Standard Allocation is crucial, as it directly impacts the restock fees and potentially the volume of products a franchisee is expected to manage.