Under what conditions might the Security Deposit amount need to be increased for an Aerus franchise?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Standard Allocation | The Standard Allocation is established by us (in the Manuals or otherwise in writing) and will vary based upon the franchise program you elect and 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. |
| Security Deposit | 88% of the Standard Allocation for all Consigned Products held in your inventory. Amount will vary depending upon Consigned Products held in inventory and your sales volume. | On demand. | You may be required to increase the amount of your Security Deposit in the event the Consigned Products held in your inventory increases or in the event the Standard Allocation for such Consigned Products increases. |
Source: Item 6 — Other Fees (FDD pages 20–27)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, the amount of the security deposit, which is 88% of the Standard Allocation for all Consigned Products held in inventory, may need to be increased under certain conditions. The specific amount of the security deposit will vary depending on the amount of Consigned Products held in inventory and the franchisee's sales volume.
Specifically, Aerus may require a franchisee to increase their security deposit if the amount of Consigned Products held in their inventory increases. This means that if a franchisee chooses to stock more products, Aerus may require a higher security deposit to cover the increased risk.
Additionally, Aerus may require a franchisee to increase their security deposit if the Standard Allocation for the Consigned Products increases. The Standard Allocation is established by Aerus and may vary based on the franchise program the franchisee elects and their sales volume. Therefore, if Aerus increases the Standard Allocation, the franchisee's security deposit may also need to be increased to maintain the 88% coverage.