Under what circumstances might an Aerus franchisee be required to pay the full Standard Allocation even without a sale?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | As established by us in the Manuals or otherwise in writing. Amount will vary depending upon your sales volume. | Promptly upon sale. | You must remit to us or our Affiliate the Standard Allocation for the Consigned Products sold. You may be required to pay to us or our Affiliate, the full Standard Allocation, as if a sale had occurred for any Consigned Products held in your inventory for 90 days or longer. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, a franchisee may be required to pay the full Standard Allocation even if a direct sale has not occurred. Specifically, if Consigned Products remain in the franchisee's inventory for an extended period, Aerus can treat this as a de facto sale for allocation purposes.
According to Item 6, Aerus franchisees may be required to pay the full Standard Allocation, as if a sale had occurred, for any Consigned Products held in their inventory for 90 days or longer. The Standard Allocation amount itself is determined by Aerus and can vary depending on the franchisee's sales volume.
This policy has significant implications for franchisees. It means that franchisees must effectively manage their inventory to avoid being charged for products that have not actually been sold to customers. This could put financial strain on the franchisee if products are not moving as quickly as anticipated, potentially impacting profitability. Franchisees should carefully consider their sales projections and inventory management capabilities before entering into an agreement with Aerus.