Does the Standard Allocation for Aerus vary, and if so, on what basis?
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)
According to Aerus's 2025 Franchise Disclosure Document, the Standard Allocation affects the Restocking Fee. The Restocking 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. Therefore, the Restocking Fee varies based on the franchisee's Standard Allocation and the amount of Consigned Product returned.
This means that if a franchisee has a higher Standard Allocation, the Restocking Fee will be higher for the same amount of returned Consigned Products compared to a franchisee with a lower Standard Allocation. Franchisees should carefully consider their initial Standard Allocation and manage their inventory to minimize potential Restocking Fees.
Prospective franchisees should review the manuals to fully understand the conditions under which Consigned Products can be returned and how the Standard Allocation is determined. Understanding these factors will help in managing costs and avoiding unexpected fees.