Under what circumstances is the Aerus closure fee of $100 payable?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
llocation and Consigned Product returned. |
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Administration and Technical Support Fee | $250 per month for each Approved Location. | Monthly as prescribed in the Manuals or otherwise in writing. | This fee is for administrative and technical support provided to you by the Company, namely our standard software and communication package, which may include a customer database and lead management software package. |
| Minimum Local Advertising Expense | An amount equal to at least 2% of Gross Sales. | Payable directly by you. | You must spend at least this amount on local advertising, marketing and promotional activities. |
| System Media Fund Fee | 3% of Gross Sales. | Monthly as prescribed in the Manuals or otherwise in writing. | Applicable only if installed by us. The System Media Fund is an advertising program designed to facilitate media market spending. Although we do from time to time conduct limited advertising on national or regional basis, we have not imposed the System Media Fund and do not currently charge this fee. |
| Interest | Lesser of 1½% per month or maximum rate allowed by applicable law. | On demand. | Interest may be charged on all overdue amounts. |
| Relocation Fee | $100 | Upon notification by you of your request to move or relocate an Approved Location. | This fee is payable for any relocated location under your franchise or which you license through your franchise. |
| Transfer Fee | $100 | Upon notification by you or your principals of their intent to transfer. | This fee is payable for any transfer of (i) all or any portion of an ownership interest in franchisee or (ii) an Approved Location. |
| Closure Fee | $100 | Upon notification by you of your request to close a location. | This fee is payable for any closed location under your franchise. |
| Renewal Fee | $100 | Upon notice of your intent to renew. | See Item 17. |
| Type Of Fee | Amount | Due Date | Remarks |
| ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Royalty | 8% of Gross Sales (as defined below this table). Subject to increase upon 90 days' notice to you, provided that the Royalty will not exceed 12% of your monthly Gross Sales. | Monthly or more frequently as prescribed in the Manuals or otherwise in writing. | For purposes of calculating the royalty, Gross Sales will be determined according to the definition below this table, provided that the sum will be limited to the total selling price of (i) all services performed, (ii) certain service, labor and aftermarket parts, supplies and accessories (all as set forth in the Manuals) and (iii) the service component of all package sales involving both Consigned Product and service (as set forth in the Manuals). |
| Premises | Negotiated. | Monthly, prior to | Applies only when you purchase an |
| Sublease Rental | the 1st day of each | existing Aerus Business from us or our | |
| Fee | month. | affiliate. | |
| Contest Participation Fees | Our then-current fee, generally 50% of the actual costs or Standard Allocation for participants affiliated with the Franchised Business. | Upon receipt of invoice from us or as prescribed in the Manuals or otherwise in writing. | See Item 11. The amount of this fee will depend on the number, if any, of contest winners from your Franchised Business and could range from $0.00 to more than $5,000. |
| Legal Fees and Indemnification | Actual loss, fees, and costs incurred. | On demand. | You and your principals must pay all damages and expenses, including the legal costs We incur in connection with, among other things, your breach of the Franchise Agreement and indemnify us when certain of your actions result in loss to us. |
| Liquidated Damages | $5,000 per occurrence for breach of confidentiality covenants; $1,500 per day for breach of noncompetition covenants. | On demand. | See Exhibit 2(b) and (d), Franchise Agreement Section 6.D. and 18.D. |
| Penalties | $1,000-$5,000, depending on the type of breach and frequency of prior breaches. | On demand. | See Exhibit 2(b) a |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee must pay a $100 closure fee under specific circumstances. This fee is triggered when the franchisee notifies Aerus of their intent to close a location. The FDD explicitly states that this fee applies to any location closed under the franchise agreement.
In practical terms, this means that if an Aerus franchisee decides to cease operations at an approved location, they must inform Aerus and remit the $100 closure fee. This fee likely covers administrative costs associated with updating records and processing the closure. It is important for prospective franchisees to factor this potential expense into their financial planning, especially if they anticipate the possibility of needing to close a location during the term of their franchise agreement.
While $100 may seem like a minor expense, it's crucial for franchisees to understand all potential fees associated with operating an Aerus franchise. This closure fee, along with other fees outlined in Item 6 of the FDD, contributes to the overall cost of franchise ownership. Franchisees should carefully review the FDD and discuss any questions or concerns about fees with Aerus before signing the franchise agreement.
It is also worth noting that the closure fee is separate from any other potential costs associated with closing a business, such as lease termination fees, inventory disposal costs, or employee severance. Franchisees should consult with legal and financial professionals to fully understand the implications of closing an Aerus location.