What is the total Intercompany liability reported for Aerus?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
s). For the year ended December 31, 2024 and 2023, $24,175 and $39,980 notes were financed by the Company, respectively. These notes do not bear interest.
Notes to Financial Statements December 31, 2024
Note 6 – Related Party Transactions
For the year ended December 31, 2022 Aerus charged the Company $4,506,000 for certain corporate overhead services, which is included in administrative expenses. For the year ended December 31, 2023, this amount decreased to $3,285,000. For the year ended December 31, 2024, this amount decreased to $2,861,000.
At December 31, 2024, and December 31, 2023, the Company has total receivables of $4,009,829 and $4,171,458 respectively, due from ActivePure Enterprise, ActivePure Partner, ActivePure Global, ActivePure Manufacturing, AES, Aerus Canada, Aerus Enterprise, Pure (ABC), Pure (TPC), and Vollara. Royalty fees due to the Company as well as note payment and funds from the sale of machines and parts are collected by Aerus, LLC and submitted to the Compan
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
Based on the 2025 Aerus Franchise Disclosure Document, the document does not explicitly state the total intercompany liabilities. However, it does mention related party transactions. Specifically, for the year ended December 31, 2022, Aerus charged the company $4,506,000 for corporate overhead services, which decreased to $3,285,000 in 2023 and further to $2,861,000 in 2024. Additionally, as of December 31, 2024, Aerus had total receivables of $4,009,829 due from related entities like ActivePure Enterprise and Aerus Canada, which represents amounts collected by Aerus, LLC but not yet submitted to the company.
For a prospective franchisee, understanding these related-party transactions is crucial. The charges for corporate overhead services directly impact the company's expenses and, potentially, its profitability, which could affect the support and services it can provide to franchisees. The receivables from related entities indicate ongoing financial interactions between Aerus and its affiliates, which could influence the company's financial stability and its ability to meet its obligations.
Given that the FDD does not provide a specific figure for total intercompany liabilities, it is important for a potential franchisee to ask Aerus for a detailed breakdown of all intercompany liabilities. This information would provide a clearer picture of the financial relationships between Aerus and its related entities, helping the franchisee assess the overall financial health and stability of the franchisor.