Are there any financial thresholds that an Aerus franchisee must meet (as potentially outlined in Item 7) to be eligible for financing (Item 10)?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
8, 11, 12, 22 | |
Item 10
FINANCING
We are not obligated to offer financing to any franchisee. However, we or our affiliates may offer financing for (i) initial fees, (ii) Security Deposit, (iii) accessories, parts and supplies purchased from us or our affiliate, and (iv) the purchase of the assets of any existing Aerus Business that you may be acquiring from us or one of our affiliates. The amount financed and the terms of the financing will vary, based upon, among other things, the performance of the Aerus Business as measured by the number of Products sold, the goodwill associated with the location and your creditworthiness.
We anticipate that you will make an initial down payment ranging from approximately $2,500 to $50,000. The balance will be paid in equal monthly installments until paid in full or as we or our affiliates may otherwise determine. The debt may be pre-paid without penalty. If you default under your payment obligations, we may terminate the Franchise Agreement. If you finance any amount, you must sign a secured promissory note ("the Note") in the form attached to this Disclosure Docu
What This Means (2025 FDD)
According to the 2025 Aerus Franchise Disclosure Document, Aerus does not obligate itself to offer financing to any franchisee. However, Aerus or its affiliates may offer financing for initial fees, security deposits, accessories, parts and supplies purchased from them, and the purchase of assets of an existing Aerus business.
The availability and terms of financing are contingent upon factors such as the Aerus Business's performance, specifically the number of products sold, the goodwill associated with the location, and the franchisee's creditworthiness. Aerus anticipates that a franchisee will make an initial down payment ranging from approximately $2,500 to $50,000. The balance will be paid in equal monthly installments until paid in full or as Aerus or its affiliates may otherwise determine.
If a franchisee defaults on their payment obligations, Aerus has the right to terminate the Franchise Agreement. If financing is provided, the franchisee must sign a secured promissory note, which may require a guarantee by the principals of the franchisee. While Item 7 mentions that Aerus or its affiliates may offer financing when purchasing an existing Aerus Business from them to qualified franchisees, it does not specify particular financial thresholds that a franchisee must meet to be eligible for financing.