What triggers the late charge for the Aerus Secured Promissory Note?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing required monthly payments, Maker shall pay to the Payee a late charge of five percent (5%) of any monthly payment required to be made hereunder or under the Security Agreement (as hereinafter defined) which is not received by the Payee within ten (10)
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a late charge of 5% is applied to any monthly payment required under the Secured Promissory Note or the Security Agreement if it is not received by Aerus within ten days of the due date.
This means that if an Aerus franchisee fails to make their monthly payment within ten days of the scheduled due date, they will incur an additional charge of 5% of the overdue amount. For example, if a monthly payment is $1,000 and it is received 11 days after the due date, a late fee of $50 (5% of $1,000) will be added to the franchisee's outstanding balance.
Franchisees should be aware of this late charge policy and ensure that payments are made promptly to avoid incurring additional fees. Setting up automatic payments or reminders can help franchisees manage their payment schedule and prevent late payments. This is a fairly standard practice in franchising, as franchisors want to ensure timely payments to maintain cash flow and financial stability.