What is the total estimated initial investment for an Aerus Standard Program franchise (Item 7) and how does it compare to the potential financing options available (Item 10)?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
ASSOCIATE PROGRAMS)**
| Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |---------------------------------------------------------------------------------|-----------------------------------------|------------------------------------------|--------------------------------|--------------------------------------------------|------------------------------------------| | Initial Franchise(1) Fee | $3,000 | $1,000 | Lump Sum | At Signing of Franchise Agreement | Us | | Beyond Addendum(2) | $0 to $100 | $0 to $100 | Lump Sum | As Arranged | Us | | Fee | | | | | | | Leasehold | $0 to $15,000 | $0 to $5,000 | As Arranged | As Arranged | Other Suppliers; | | Improvements(3) | | | | | Contractors | | Furniture Fixtures | $2,500 to | $2,000 to | As Arranged | As Arranged | Us, our affiliate or | | and Equipment(4) | $15,000 | $5,000 | | | Other Suppliers | | Vehicle(5) | $0 to $8,440 | $0 to $8,440 | As Arranged | As Arranged | Suppliers | | Initial Inventory (supplies, consigned products, spare parts, etc.)(6) | $15,000 to $90,000 | $5,000 to $20,000 | Lump Sum and As Arranged | Upon Placement of Order and As Arranged | Us, our affiliate, or Other Suppliers | | Pre-Opening Training | $1,000 to | $1,000 to | As Arranged | As Arranged | Airline, Hotel, | | Expenses(7) | $7,000 | $7,000 | | | Restaurants, etc. | | Supplies (stationary, | $100 to $600 | $100 to $600 | As Arranged | As Arranged | Suppliers | | business cards, etc.) | | | | | | | (for 3 months) | | | | | | | Permits & Licenses | $50 to $200 | $50 to $200 | Lump Sum | As Arranged | Licensing Authorities | | Insurance deposits and Premiums (for first year)(8) | $1,500 to $2,000 | $1,500 to $2,000 | Lump Sum | As Arranged | Insurers | | Architect Fees | $0 to $5,000 | $0 to $2,000 | As Arranged | As Arranged | Architect | | Other Professional | $500 to $1,000 | $500 to $1,000 | As Arranged | As Arranged | Attorneys, | | Fees | | | | | Accountants, etc. | | Site Lease (for | $500 to $10,000 | $500 to $3,000 | Lump Sum | Monthly | Landlord | | 3 months)(9) | | | | | | | Utility Deposits | $350 to $450 | $350 to $450 | Lump Sum | As Arranged | Utility Companies | | Advertising and | $0 to $5,000 | $0 to $2,500 | As Arranged | As Arranged | Suppliers, Media, | | Promotion | | | | | etc. | | Type of Expenditure | Estimated Cost – Standard Program | Estimated Cost – Associate Program | Method of Payment | When Due | To Whom Payment is to be made | |------------------------------------|-----------------------------------------|------------------------------------------|----------------------|-------------|-------------------------------------| | Signage | $1,000 to $5,000 | $1,000 to $2,500 | As Incurred | As Incurred | Signage Suppliers | | Additional Funds | $5,000 to | $3,000 to | As Incurred | As Incurred | Employees, | | (3 months)(10) | $50,000 | $10,000 | | | Suppliers | | Goodwill(11) | $0 to $200,000 | $0 to $25,000 | Lump Sum | At Close | Us and Our affiliates | | TOTALS | $30,500 to $417,790 | $16,000 to $95,790 | | | | Notes: Your estimated initial investment will vary depending upon if you choose the Standard Program or the Associate Program. Except as otherwise noted in this Disclosure Document, all fees payable to us are non-refundable. Inflation, tariffs, and worldwide events may impact various costs, including, among others, furnishings, fixtures, equipment, building costs, vehicle costs, and inventory.
Note 1. See Item 5 of this Disclosure Document for more information about the initial franchise fee. In limited circumstances, we will finance or reduce the initial franchise fee. See Item 10 for more details about financing of initial franchise fees.
Note 2. The Beyond Fee is only applicable to franchisees who sign a Beyond Addendum.
Note 3. The cost of leasehold improvements will vary depending on the condition and size of the site, the local cost of contract work, and the location of the Franchised Business, and zoning requirements. The high estimated figures include remodeling walls, ceilings, floors, and other construction including electrical and carpentry work. The low estimate assumes that the leasehold is in suitable operating condition immediately on your taking possession of the premises and/or that the landlord will make the leasehold improvements and amortize their cost over the term of the lease.
Note 4.
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the total estimated initial investment for a Standard Program franchise ranges from $30,500 to $417,790. This investment covers various expenses, including the initial franchise fee, leasehold improvements, furniture, fixtures, equipment, vehicle costs, initial inventory, pre-opening training expenses, supplies, permits and licenses, insurance, architect fees, professional fees, site lease costs, utility deposits, advertising and promotion, signage, additional funds, and goodwill. The wide range in the total estimated cost is due to the variability in costs such as leasehold improvements, furniture, fixtures, equipment, initial inventory, pre-opening training expenses and additional funds needed during the first three months of operation. These costs can fluctuate significantly based on location, the size of the premises, and the scale of business operations. Prospective franchisees should carefully consider these factors and conduct thorough market research to estimate their actual initial investment.
Aerus, or its affiliates, may offer financing for certain aspects of the initial investment, including initial fees, security deposits, accessories, parts and supplies purchased from them, and the purchase of assets of an existing Aerus business. However, Aerus is not obligated to offer financing to any franchisee, and the availability and terms of financing will vary based on the franchisee's creditworthiness and the performance and goodwill of the Aerus business.
The FDD indicates that if financing is offered, a down payment ranging from approximately $2,500 to $50,000 is anticipated, with the balance paid in equal monthly installments. The debt may be pre-paid without penalty. Franchisees must sign a secured promissory note, and default in payment obligations may lead to termination of the Franchise Agreement. Prospective franchisees should carefully review the terms of the financing and the secured promissory note to understand their obligations and potential risks. Given the potential for financing, prospective franchisees should discuss these options with Aerus to determine eligibility and understand the specific terms that may be offered.