What is the term range in years for the Note associated with Aerus financing?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
sonable to protect and perfect the interest of us or our affiliate, as lender. The Note will bear interest from 0% to 7% per annum (or the maximum rate permitted by applicable law, whichever is less) and will have a term ranging from one to five years.
The following table summarizes the previous paragraph:
| Item Financed | Asset Purchase, Security Deposit, Initial Fees, Parts and Supplies |
|---|---|
| Initial Payment | At least $2,500 |
| Term (Yrs.) | 1 to 5 years |
| APR (%) | 0% to 7% (or the maximum rate permitted under applicable law, whichever is less) |
| Monthly Payment | Level payments based on an amount financed |
| Prepay Penalty | None, you may prepay all amounts owed without penalty |
| Security Required | Limited Personal Guaranty and perfected security interest in assets purchased under the Standard or Associate Programs. |
| Liability Upon Default | Accelerated balance, late fee equal to 5% of any overdue amount, termination of Franchise Agreement; interest, attorneys' fees and collection costs, foreclosure on secured assets |
| Loss of Legal Right On Default | Waive demand for payment, presentment, protest, notice of protest and non-payment, or other notice of de |
Source: Item 10 — Financing (FDD pages 34–36)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, if Aerus or its affiliates offer financing, the term for the secured promissory note ('the Note') ranges from one to five years. This applies to financing for initial fees, security deposits, accessories, parts and supplies purchased from Aerus, or the purchase of assets of an existing Aerus business.
The interest rate on the Note will range from 0% to 7% per annum, or the maximum rate permitted by applicable law, whichever is less. The franchisee will make level monthly payments based on the amount financed, and there is no prepayment penalty. The Note is governed by Texas law, as detailed in Exhibit 3 of the FDD.
Defaulting on the Note can lead to serious consequences, including an accelerated balance, a late fee of 5% of the overdue amount, termination of the Franchise Agreement, and foreclosure on secured assets. Additionally, the franchisee waives certain legal rights upon default, such as demand for payment and notice of default. Principals of the franchised business must guarantee the Note in cases of fraud, misrepresentation, theft, misuse of intellectual property, or breach of the Franchise Agreement.