Under what conditions can Aerus withdraw funds from the franchisee's designated bank account?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. At Company's option, Company may withdraw funds from Franchisee's designated bank account by electronic funds transfer or comparable method in the amount of any Payment or any other amounts due hereunder to Company and for all subsequent payments due to Company, as further described in the Manuals or otherwise in writing. Franchisee shall at all times maintain in its designated bank account a minimum balance in the amount specified in the Manuals.
ATTACHMENT B
ELECTRONIC FUNDS TRANSFER AUTHORIZATION
The undersigned Depositor (Franchisee) hereby authorizes and requests the Depository designated below to honor and to charge to the following designated account, checks and electronic debits (collectively, "debits") drawn on such account which are payable to Aerus Franchising, LLC (or its designee) as Payee at the banking institution, account number and ABA number to be separately provided to Depository by Payee. It is agreed that Depository's rights with respect to each such debit shall be the same as if it were a check drawn and signed by the Depositor. It is further agreed that if any such debit is not honored, whether with or without cause and whether intentionally or inadvertently, Depository shall be under no liability whatsoever. This authorization shall continue in force until Depository and Payee have received at least thirty (30) days written notification from Depositor of its termination.
The Depositor agrees with respect to any action taken pursuant to the above authorization:
- (1) To indemnify the Depository and hold it harmless from any loss it may suffer resulting from or in connection with any debit, including, without limitation, execution and issuance of any check, draft or order, whether or not genuine, purporting to be authorized or executed by the Payee and received by the Depository in the regular course of business for the purpose of payment, including any expenses reasonably incurred in connection therewith.
- (2) To indemnify Payee and the Depository for any loss arising in the event that any such debit shall be dishonored, whether with or without cause and whether intentionally or inadvertently.
- (3) To defend at Depositor's own expense any action which might be brought by a depositor or any other persons because of any actions taken by the Depository or Payee pursuant to the foregoing request and authorization, or in any manner arising by reason of the Depository's or Payee's participation therein.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus's 2025 Franchise Disclosure Document, Aerus has the option to withdraw funds from a franchisee's designated bank account under specific conditions. Aerus can do so via electronic funds transfer or a comparable method. This withdrawal can be made to cover the amount of any payment or other amounts that the franchisee owes to Aerus under the Franchise Agreement. This also applies to all subsequent payments due to Aerus. The specifics of this process are further detailed in the manuals or in writing.
As a condition, the franchisee must maintain a minimum balance in their designated bank account, with the specific amount to be detailed in the manuals. This arrangement is formalized through an Electronic Funds Transfer Authorization form, where the franchisee authorizes their bank to honor electronic debits payable to Aerus. The authorization remains in effect until the bank and Aerus receive a 30-day written notification of termination from the franchisee.
This arrangement carries certain implications for the franchisee. They agree to indemnify both the bank and Aerus for any losses resulting from these debits, including any dishonored payments, regardless of the reason. The franchisee is also responsible for defending any legal actions arising from the bank's or Aerus's actions related to this authorization. This arrangement ensures Aerus can collect payments efficiently but places a significant responsibility on the franchisee to maintain sufficient funds and manage their account diligently.