Does Expense Reduction Analysts allow me to be involved in a competing business while in my position with the franchisee?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise approved in writing by the Franchisor, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business that: (i) is involved in cost reduction and supplier relationship management consulting similar to the Franchised Business and/or that features, offers and/or sells products and services similar to the those offered and sold by the Franchised Business and/or other ERA Group franchises (a "Competing Business"); or (iii) grants or has granted franchises or licenses, or establishes or has established joint ventures, for one or more Competing Businesses. I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose. All parties acknowledge and agree that there is no intent to prohibit me from obtaining employment or engagement with another franchisee of Franchisor.
7.1Post-Term Restrictive Covenant for Consulting Employee of Franchised Business or Manager, Officers, Directors of the Franchisee. In the event I am a manager of the Franchised Business, or an officer, director, manager or partner of the Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two (2) years after the expiration or termination of my employment with the Franchisee for any reason: (i) at the Premises; (ii) within the Area; or (iii) within a 50-mile radius of (a) the perimeter of the Area, or (b) any other Area granted by the Franchisor to any other Franchised Business at the time my employment with the Franchisee ceases through the date of my involvement with the Competing Business. I also agree that I will not be involved in the franchising or licensing of any Competing Business at any location, or undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of the Franchisee for any competitive business purpose, during this two (2) year period following the termination or expiration of my employment or independent contractor relationship with the Franchisee. All parties acknowledge and agree that there is no intent to prohibit me from obtaining employment or engagement with another franchisee of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, while in a position with the franchisee, you are restricted from owning, maintaining, engaging in, being employed by, or having any interest in a Competing Business, unless you receive written approval from Expense Reduction Analysts. A Competing Business is defined as one involved in cost reduction and supplier relationship management consulting similar to the Expense Reduction Analysts franchised business, or one that offers similar products and services, or grants franchises or licenses for similar businesses.
This restriction applies to any involvement, whether it's for yourself or in conjunction with another entity. Furthermore, you are prohibited from diverting business away from the Expense Reduction Analysts franchise or soliciting its customers or employees for a competitive business. However, this does not prevent you from seeking employment or engagement with another Expense Reduction Analysts franchisee.
After leaving your position with the Expense Reduction Analysts franchisee, if you were a manager, officer, director, or partner of the Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, you are further restricted from involvement in a Competing Business for two years. This restriction applies (i) at the Premises; (ii) within the Area; or (iii) within a 50-mile radius of (a) the perimeter of the Area, or (b) any other Area granted by the Franchisor to any other Franchised Business at the time my employment with the Franchisee ceases through the date of my involvement with the Competing Business. This includes franchising or licensing any Competing Business at any location, diverting business from the Franchised Business, or soliciting former customers or employees. Again, this does not prevent you from seeking employment or engagement with another Expense Reduction Analysts franchisee.
These restrictions are typical in franchise agreements to protect the brand and business model of Expense Reduction Analysts. Prospective franchisees should carefully consider these limitations and how they might affect their future business endeavors.