factual

In which states does Aerus not require a good faith deposit and defers the initial franchise fee?

Aerus Franchise · 2025 FDD

Answer from 2025 FDD Document

As an incentive to recruit new franchisees into the business, we may waive or discount the initial franchise fee. For franchises in certain states (including Maryland, Minnesota, New York, Virginia and Washington), a good faith deposit is not required and the initial franchise fee will be deferred until your business is open and operational.

Source: Item 5 — Initial Fees (FDD pages 17–20)

What This Means (2025 FDD)

According to Aerus's 2025 Franchise Disclosure Document, Aerus may waive the good faith deposit and defer the initial franchise fee as an incentive to recruit new franchisees. For franchises in Maryland, Minnesota, New York, Virginia, and Washington, a good faith deposit is not required. Additionally, in these states, the initial franchise fee will be deferred until the franchisee's business is open and operational.

This policy can significantly lower the initial financial barrier for franchisees in those specific states. Instead of paying the initial franchise fee upfront, franchisees can use those funds to establish their business and begin operations. This deferred payment structure aligns the franchisor's interests with the franchisee's success, as Aerus only receives the initial franchise fee once the business is up and running.

However, it's important to note that this incentive is not available in all states. Prospective franchisees outside of Maryland, Minnesota, New York, Virginia, and Washington should be prepared to pay a good faith deposit (potentially $100) and the initial franchise fee upon signing the Franchise Agreement. The initial franchise fee varies depending on the type of franchise program chosen, such as the Standard Program ($3,000) or the Associate Program ($1,000).

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.