Bottom line
- Total investment $16K – $418K including a $3K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- System contracting at -19.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Aerus unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
Aerus franchisees operate air purification, water treatment, and environmental services businesses, typically selling and installing HVAC and water quality systems to residential and commercial customers. Day-to-day activities include customer acquisition, product demonstrations, installation/service calls, and maintaining recurring service contracts for equipment maintenance and replacement filters.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 29 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Aerus presents HIGH RISK due to a contracting franchise system (−17.3% YoY), undisclosed unit economics, false going concern status, active franchisor litigation, and an unusually restrictive 1-year term that provides minimal franchisee security.
Score breakdown · what drove the 70 / 100 rating
- 01MINORSystem declining sharply: 166 units down 17.3% YoY indicates contracting franchisee base and potential market saturation or performance issues
- 02MINORNo financial disclosure (Item 19): Franchisor refuses to disclose average unit revenue and net income, making ROI completely opaque and preventing informed investment decisions
- 03HIGHGoing Concern status is FALSE: Red flag suggesting franchisor financial instability or accounting irregularities that undermine system viability
- 04HIGHActive litigation with franchisees: Pending 2025 arbitration by franchisor against former franchisee over post-term obligations suggests disputes over contract enforcement and exit terms
- 05MINORHistorical trademark/contract disputes: 2019 settled lawsuit involving breach of contract and trademark violation indicates systemic relationship conflicts with channel partners
- 06MINORExtremely short 1-year term: Unusual franchise term length provides minimal business stability, high renewal uncertainty, and extreme dependency on franchisor goodwill
- 07MEDHigh royalty burden at 8% with no performance data: Without disclosed earnings, franchisees cannot verify royalty sustainability relative to actual profitability
- 08MEDWide investment range ($16K–$417K) with no guidance: Massive variance suggests inconsistent unit economics, unclear startup costs, or undisclosed territory/support variables
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Aerus · FDD (2025) PDF