Aerus Franchise

Financing Details

Aerus Franchising or its affiliates may offer financing for the purchase of accessories, parts, and supplies, and for the assets of an existing Aerus Business. They may also offer financing for initial fees and the Security Deposit, although the document explicitly states that, except in very limited circumstances, the inventory security deposit and initial franchise fee generally must be paid in cash and will not be financed by Aerus Franchising or its affiliates. The amount and terms of any financing will vary based on factors like the business's performance, location's goodwill, and the franchisee's creditworthiness. An initial down payment ranging from $2,500 to $50,000 is anticipated, with the balance paid in equal monthly installments over one to five years. The interest rate for these loans can range from 0% to 7% per annum (or the maximum legal rate), and there are no penalties for prepaying the debt. If financing is extended, franchisees must sign a secured promissory note, security agreement, and guarantee, with a limited personal guarantee and a perfected security interest in purchased assets.

Litigation Summary

Aerus Franchising has disclosed two litigation cases. One case is currently pending, filed on February 17, 2025, by Aerus Franchising against a former franchisee, AVACS, LLC, and Joe Ardito. This suit aims to enforce post-termination obligations and prevent trademark infringement and trade secret misappropriation. The other case, Enviro Professionals, LLC v. Aerus Enterprise Solutions, LLC, involved an affiliate of Aerus Franchising and its officers as defendants. This lawsuit, filed in May 2018, alleged various claims including civil conspiracy, trademark violations, breach of contract, and trade secret violations by a former distributor. The parties settled this case, as well as related arbitration proceedings, on June 5, 2019, with a payment of $350,000 to one of EnviroPro's owners and an agreement for EnviroPro to sell its intellectual property rights and for an owner to enter a non-compete agreement.

Renewal Conditions

To renew their franchise agreement, Aerus Franchising franchisees must meet several conditions: they must give written notice of their desire to renew at least 30 days before the initial term expires, have no uncured defaults under the agreement, and have achieved at least $10,000 in monthly Gross Sales during each of the prior six months. Additionally, they must sign Aerus Franchising's then-current form of franchise agreement (which may have different terms), pay a $100 renewal fee, and the franchisee, its principals, and guarantors must execute a general release of all claims against Aerus Franchising and its affiliates. These renewal rights are only available if Aerus Franchising is actively offering new franchise rights in the state where the franchise is located at the time of renewal.

Staffing Notes

Aerus Franchising requires franchisees to designate and retain an Operating Principal, General Manager, and for each location, a Sales Manager and Service Manager. If the franchisee is an individual, they must fulfill the roles of Operating Principal and General Manager. Under the Associate Program, a Service Manager is not required if the franchisee is not mandated to maintain a service and repair center. Aerus Franchising may set minimum staffing requirements and operating hours in its Manuals. Franchisees are also permitted to hire other employees, consultants, and agents as needed, as well as sales representatives, who must operate according to the franchise agreement and manuals. The franchisee has sole authority over all employment matters, including hiring, firing, discipline, compensation, and scheduling.