To whom is the Standard Allocation remitted for Aerus franchises?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | The Standard Allocation is established by us (in the Manuals or otherwise in writing) and will vary based upon the franchise program you elect and your sales volume. | Promptly upon sale. | You must remit to us or our Affiliate the Standard Allocation for the Consigned Products sold. You may be required to pay to us or our Affiliate, the full Standard Allocation, as if a sale had occurred for any Consigned Products held in your inventory for 90 days or longer. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, franchisees must remit the Standard Allocation for Consigned Products sold promptly upon the sale. This Standard Allocation is determined by Aerus and may vary based on the specific franchise program the franchisee chooses and their sales volume.
Specifically, the franchisee is required to remit the Standard Allocation either to Aerus itself or to an Aerus affiliate. This means that the payment might not always go directly to the franchisor but could be directed to a related entity.
Furthermore, Aerus franchisees may be required to pay the full Standard Allocation as if a sale had occurred for any Consigned Products that have been held in their inventory for 90 days or longer, regardless of whether those products have actually been sold. This policy could impact a franchisee's cash flow, as they may need to pay for inventory that hasn't yet generated revenue.