What does the term 'Initial Franchise Fee' mean in the Aerus franchise agreement?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- Y. "Initial Franchise Fee" means the fee payable by Franchisee to Company upon execution of this Agreement in an amount specified in Schedule 3, attached hereto.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, the Initial Franchise Fee is defined as the fee that the franchisee must pay to Aerus when the franchise agreement is executed. The specific amount of this fee is detailed in Schedule 3 of the franchise agreement.
This fee is a standard component of most franchise agreements and compensates Aerus for granting the franchisee the right to operate under the Aerus brand, utilize its system, and receive initial training and support. It's important for prospective franchisees to understand that this fee is typically non-refundable and is paid upfront.
Schedule 3, which contains the specific amount, is a crucial document for potential Aerus franchisees to review carefully. Besides the initial franchise fee, Schedule 3 also specifies the amounts for other fees such as the Administration and Technical Support Fee, the Application Fee, the Location Closure Fee, the Minimum Local Advertising Expense, and the New Location Fee. Understanding all these fees is essential for assessing the overall financial investment required to start and operate an Aerus franchise.