In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Expense Reduction Analysts franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Expense Reduction Analysts franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Expense Reduction Analysts outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Expense Reduction Analysts franchise opportunity

Section V – Presentation and analysis of Expense Reduction Analysts’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low net cumulative receipts for the 58 full-time Expense Reduction Analysts Regional Franchisees that were active throughout the entire 2023 calendar year, by quartile and overall

• 2023 average, median, high, and low net cumulative receipts for the 62 part-time Expense Reduction Analysts Regional Franchisees that were active throughout the entire 2023 calendar year

• 2023 average cumulative invoice total per project, average cumulative royalties total per project, average cumulative marketing fund total per project, average cumulative net total per project, average projects per client signed at start of engagement for the 102 Expense Reduction Analysts Regional Franchisees operating a total of 144 licenses for the period from January 1, 2023 to December 31, 2024 (the “Review Period”)

Section VI – Key ratios, comparables, computations, and analyses for the Expense Reduction Analysts franchise opportunity (exclusive content for Platinum subscribers)

Section I – Expense Reduction Analysts Franchise Costs

• Initial Franchise Fee:  $69,900
• Initial Training and Coaching Fee:  $0 to $10,000
• Training Expense:  $2,000 to $4,000
• Computer Hardware and Software:  $0 to $3,000
• Furniture and Equipment:  $0 to $3,000
• Supplies Inventory:  $0 to $1,000
• Insurance:  $1,000 to $3,500
• Professional Fees:  $0 to $5,000
• Permits and Licenses:  $100 to $500
• Additional Funds for 3 Months:  $3,000 to $6,000
• Total Estimated Expense Reduction Analysts Franchise Costs:  $76,000 to $105,900

Section II – Expense Reduction Analysts’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $69,900
• Royalty Fee:  Royalty Fee is the greater of: (i) 15% of annual Net Cumulative Receipts for the immediately preceding calendar month; or (ii) the applicable minimum royalty fee (the “Minimum Royalty Fee”)
• Marketing Fund Contributions:  3% of annual Net Cumulative Receipts

Section III – Number of Franchised and Company-Owned Expense Reduction Analysts Outlets

Franchised

2021

• Outlets at the Start of the Year:  141
• Outlets at the End of the Year:  145
• Net Change:  +4

2022

• Outlets at the Start of the Year:  145
• Outlets at the End of the Year:  136
• Net Change:  -9

2023

• Outlets at the Start of the Year:  136
• Outlets at the End of the Year:  144
• Net Change:  +8

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  2
• Net Change:  +2

Section IV – News Updates on the Expense Reduction Analysts Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Expense Reduction Analysts Franchise (Item 19, 2024 FDD)

• The following tables present unaudited information about the historical Net Cumulative Receipts generated by 102 of Expense Reduction Analysts’ Regional Franchisees operating a total of 144 licenses for the period from January 1, 2023 to December 31, 2024 (the “Review Period”).

• This is a historic financial performance representation of active Regional Franchisees that have been operating a franchise substantially similar to the type offered in the Disclosure Document for at least 18 months.

• The franchise information contained herein does not include data for (i) area franchises; (ii) company-owned and company-affiliated outlets; (iii) and those terminated, reacquired, non-renewal, or mutually ceased operations for other reasons (where “other reasons” are typically agreed-to for medical, special circumstances, death, or other similar reasons); and (iv) the 11 Regional Franchisees that began operating in 2023.

• Note: Only franchisees who have completed the 18-month start-up phase using the elected Initial Special Marketing Program (“ISMP”) prior to the beginning of the 2023 fiscal year are included in the numbers below.

Part 1 – Net Cumulative Receipts of Full-Time Franchisees by Range for the 12 Months Ending December 31, 2023

1st Quartile

• Number of Full-Time Franchisees:  15
• Average Net Cumulative Receipts:  $703,746
• Median Net Cumulative Receipts:  $552,767
• Highest Net Cumulative Receipts:  $1,465,022
• Lowest Net Cumulative Receipts:  $371,047

2nd Quartile

• Number of Full-Time Franchisees:  14
• Average Net Cumulative Receipts:  $320,539
• Median Net Cumulative Receipts:  $310,221
• Highest Net Cumulative Receipts:  $367,365
• Lowest Net Cumulative Receipts:  $270,321

3rd Quartile

• Number of Full-Time Franchisees:  14
• Average Net Cumulative Receipts:  $215,526
• Median Net Cumulative Receipts:  $197,282
• Highest Net Cumulative Receipts:  $267,643
• Lowest Net Cumulative Receipts:  $159,899

4th Quartile

• Number of Full-Time Franchisees:  15
• Average Net Cumulative Receipts:  $119,835
• Median Net Cumulative Receipts:  $121,778
• Highest Net Cumulative Receipts:  $159,172
• Lowest Net Cumulative Receipts:  $79,319

All

• Number of Full-Time Franchisees:  58
• Average Net Cumulative Receipts:  $327,252
• Median Net Cumulative Receipts:  $268,982
• Highest Net Cumulative Receipts:  $1,465,022
• Lowest Net Cumulative Receipts:  $79,319
• Number of Full-Time Franchisees Achieving the Average:  19
• Percentage of Full-Time Franchisees Achieving the Average:  33%

Part 2 – Net Cumulative Receipts of Part-Time Franchisees for the 12 Months Ending December 31, 2023

• Number of Part-Time Franchisees:  62
• Average Net Cumulative Receipts:  $41,642
• Median Net Cumulative Receipts:  $14,642
• Highest Net Cumulative Receipts:  $277,982
• Lowest Net Cumulative Receipts:  $0
• Number of Part-Time Franchisees Achieving the Average:  17
• Percentage of Part-Time Franchisees Achieving the Average:  27%

• “Net Cumulative Receipts” means Gross Revenue less any fees that you agree to pay in connection with any Joint Venture Agreement that you enter into with another Consulting Business franchisee to provide Approved Products and Services in connection with a given Client, subject to the terms of your Franchise Agreement. A joint venture agreement is an agreement entered into between a franchisee with another franchisee or third party that delegates certain responsibilities and duties to other people.

• “Range” refers to the relative performance ranking of the Regional Franchisees. Therefore, the “Top 25%” refers to the top 25% of the franchisee count, ranked by Net Cumulative Receipts, the “Medium Top 25%” range refers to the next 25% of the franchisee count, the “Medium Low 25%” range refers to the next 25% of the franchisee count, and the “Low 25%” range refers to the last 25% of the franchisee count.

• An “Active Franchisee” is a Regional Franchisee that was active throughout the entire calendar year from January 1, 2023 to December 31, 2023. To this end, an “Inactive Franchisee” is a franchisee that did not operate the Expense Reduction Analysts Business for all 12 months during the calendar year of 2023.

• The financial performance information is separated into two tables: one for Full-Time Franchisees, and one for Part-Time Franchisees. Expense Reduction Analysts does not track the number of hours its franchisees work, but it can determine through their interactions with its systems and staff which franchisees are dedicating their full time and attention to the franchised business (“Full-Time Franchisees”).

Part 3 – Project Information

2023

• Average Cumulative Invoice Total Per Project:  $34,773
• Average Cumulative Royalties (15%) Total Per Project:  $5,216
• Average Cumulative Marketing Fund (3%) Total Per Project:  $1,043
• Average Cumulative Net Total Per Project:  $28,514
• Average Projects Per Client Signed at Start of Engagement:  5.1

• Median Project Total Invoice:  $14,665
• High Project Total Invoice:  $638,278
• Low Project Total Invoice:  $130
• Number and Percentile That Met or Exceeded Average Total Invoicing;  181 (26%)
• Number and Percentile That Met or Exceeded Median Total Invoicing:  342 (50%)

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Expense Reduction Analysts Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️