Under what conditions does Aerus not need to replenish inventory or provide goods to a franchisee?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the foregoing, Franchisee shall from time to time during the term of this Agreement, at Company's request, pay to Company as an increase to the Security Deposit, an amount equal to the Standard Allocation of all Consigned Products which remain in Franchisee's
inventory for ninety (90) days or longer. Company will refund such increases to the Security Deposit within thirty (30) days after Franchisee provides evidence satisfactory to Company confirming the sale of such Consigned Products in accordance with the terms of this Agreement.
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 conditions under which Aerus is not obligated to replenish inventory or provide goods to a franchisee. The FDD excerpt focuses on the franchisee's responsibilities regarding consigned products and security deposits. Specifically, it mentions that the franchisee may be required to increase the security deposit for consigned products that remain in their inventory for 90 days or longer. However, Aerus will refund these increases upon satisfactory evidence of the sale of these products.
While the excerpt does not detail Aerus's obligations to provide inventory, it does highlight the franchisee's duty to manage and account for consigned products. The franchisee is responsible for maintaining a service and repair center, fulfilling promises to customers, developing a sales representative organization, and utilizing customer data effectively. These obligations suggest that the franchisee plays an active role in managing inventory and customer relationships.
Given the lack of specific information about Aerus's inventory replenishment obligations, a prospective franchisee should directly inquire with Aerus about their policies on inventory supply, minimum purchase requirements, and any conditions that might affect the availability of products. Understanding these aspects is crucial for managing the business effectively and ensuring a consistent supply of products to meet customer demand.