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Expense Reduction Analysts Franchise Cost & Fees

Date of Incorporation: 2002

Franchising Since: 

Headquarters: Kent, UK (Head office in America: California)

Country: UK

Description: Expense Reduction Analysts® Consulting Practice helps client organizations reduce on-going business expenses, such as those incurred for printing, freight, equipment maintenance, courier service, telecommunications, and janitorial service and office supplies. Their parent company is Expense Reduction Analysts International, Ltd. London, United Kingdom.

Franchise Offer: The business the franchisee will operate under the License Agreement is a Consulting Practice that helps client organizations reduce on-going business expenses, such as those incurred for printing, freight, equipment maintenance, courier service, telecommunications, and janitorial service and office supplies. The primary market for the Consulting Practice is companies with annual gross revenues below $250 million.

Financial Assistance:
The franchisor does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.

Training and Assistance:
The franchisee or the person who has been appointed and the franchisor has certified as professional operator of the Consulting Practice must faithfully attend all phases of the initial training program and complete it to the franchisor’s satisfaction. The initial training program will take place at a classroom facility in the San Diego, California, area. The entire training program consists of six days of pre-opening training.

The franchisor does not grant an exclusive territory. The franchisee may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that they control. The maximum number of licensees the franchisor will establish within an Area depends upon the number of prospects (businesses with annual gross revenue under $250 million) in the Area.

Term of Agreement and Renewal: The term of the franchise agreement is 10 years with an option to renew for consecutive terms of 5 years each.

Obligations and Restrictions: The franchisor must devote full time and effort to the management and operation of the Consulting Practice. Under the License Agreement, the franchisor authorizes the franchisee to act as their agent for the limited purpose of negotiating and entering into service agreements with clients that the franchisee designates.

Total Number of Units: 800 units.

Investment Table:

Initial Investment:

Expenditure Low High
Initial License Fee $59,900 $59,900
Permits and Licenses $100 $500
Computer Hardware and Software $0 $3,000
Furniture And Equipment $0 $3,000
Utility and Equipment Deposits $0 $350
Supplies Inventory $100 $1,000
Insurance $1,500 $2,000
Organizational Expenses $0 $3,000
Training Expenses $2,500 $3,000
Additional Funds $2,000 $6,000
Total $66,100 $81,750


Ongoing Fees:

Name of Fee Amount
Marketing Fund Contributions 3% of Gross Receipts
Renewal Fee $5,000
Transfer Fee $5,000
Interest on Late Payments 18% per year
CRM Software License Fee $1,000
Training Fee $15,000
National Meeting Registration $1,000 plus out-of-pocket travel related expenses and lodging at the designated hotel
Training and Annual Meeting Costs Incidental costs for transportation, lodging and meals
Cost of Audit The franchisor’s out-of-pocket expense

Date of FDD: 2009

The above information has been taken from the UFOC/FDD and online sources of Expense Reduction Analysts.

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