What was the amount of Franchise Fees reported by Expense Reduction Analysts in 2023?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| REGIONAL FRANCHISEES | ADDRESS | NAME | PHONE | |---|---|---|---| | ARIZONA | | | | | Southwest Cost Reduction Specialists, LLC *Also in NM & West TX | 6211 San Mateo Blvd NE, Suite 120 Albuquerque, NM 87109 | Patrick J. Garr Jeffrey Travis Cantrell | 505-710-9499 | | LJ Pizzo Enterprises, Inc. | 726 Summer Top Circle | Linda J. Pizzo | 314-610-1647 | | *Also in NM & West TX | St. Louis, MO 63206 | | | | Brown Enterprises Southwest LLC *Southern, CA | 1 9 3 4 E . C a melback Road, Suite 120-529 Phoenix, AZ 85016 | G r e g o r y A. Brown Gina Brown | 858-538-0462 | | GW Consulting LLC | 1 1 0 1 W V e rsilia Drive | Graham J. Wilson | 817-209-5788 | | *Also in NM & West TX | Oro Valley, AZ 85755 | | | | Profit Maximization Consultants, LLC *Also in NM & West TX | 1 7 7 6 N . S c o t t s d a l e R o a d , Unit 2453 Scottsdale, AZ 85252 | Brian E. Suddarth | 602-689-1502 | | Drew Ventures, LLC | 3 4 4 1 N 47th Place | A n d r e w Bryans | 949-678-2238 | | *Also in NM & West TX | Phoenix, AZ 85018 | | | | Austin R. Gwynn | 1 7 2 3 N P a lm Drive | A ustin R. Gwynn | 801-362-4869 | | *Also in NM & West TX | Tempe, AZ 85288 | | | | P&L Cost Reduction Specialists, LLC | 1 2 4 4 5 N . S t a i n s b u ry Place | Peter C. Hern | 502-331-0129 | | *Also in NM & West TX | Marana, AZ 85653 | | | | CALIFORNIA | | | | | Optimal Rate Solutions, Inc. | 6965 El Camino Real 105-587, | Andrea Gardenhire | 888-408-8020 | | *Southern, CA | Carlsbad, CA 92009 | Thomas J. Frank | 760-815-1783 | | Three Star Holdings, Inc. *Southern, CA | 9 921 Carmel Mountain Road, #135 San Diego, CA 92129 | Gregory A. Brown G i n a B r o w n | 858-538-0462 | | Cornerstone Analysts, Inc. | 9 W oodhaven Lane | Stephen Jardon | 714-368-0020 | | *Southern, CA | Irvine, CA 92620 | | | | Tygar & Associates LLC | 4733 Torrance Blvd., #122 | Marylou Garcia | 310-791-5570 | | *South LA & N. Orange | Torrance, CA 90503 | | | | KAL Distributing dba KAN Consulting | 23679 Calabasas Road, Ste. 247 | Brian Lorber | 818-222-0552 | | *North Los Angeles | Calabasas, CA 91302 | | | | Profit Recovery Strategies, Inc. (N. La) | 2609 Via Rivera | John Kunich | 310-890-4313 | | *North Los Angeles | Palos Verdes Estates, CA 90274 | | | | ClearView Advisors Inc. *S.F. Bay Area | 1 7 7 P a rk Avenue, Suite 200 San Jose, CA 95113 | Michael J. Plesha | 4 0 8 - 8 3 9 - 4 9 1 7 | | RD Property And Investments, LLC | 1 0 0 L o m a A v e n u e , # 2 0 4 | Raymond D. Jansma | 570-560-4641 | | *South LA & N. Orange | Long Beach, CA 90803 | Deborah Jansma | | 
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the franchise fees reported in 2023 were $602,489. This figure represents the total initial franchise fees Expense Reduction Analysts collected from new franchisees throughout the year. Franchise fees are a primary source of revenue for Expense Reduction Analysts, as they compensate the company for granting the franchise rights, providing access to their trademark, and covering the costs associated with training programs and the operations manual.
It is important to note that while Expense Reduction Analysts collected $602,489 in franchise fees during 2023, the actual revenue recognized from these fees may differ due to accounting practices. Expense Reduction Analysts recognizes franchise fee revenue over the term of the franchise agreement, which is typically 10 years. This means that the $602,489 collected in 2023 is not fully recognized as revenue in that year but is instead deferred and recognized gradually over the following years.
Prospective Expense Reduction Analysts franchisees should understand how franchise fees contribute to the overall financial health of the company. Analyzing trends in franchise fee income, alongside other revenue streams like royalty fees and MAC income, can provide insights into the company's growth and stability. Additionally, understanding the revenue recognition policy for franchise fees is crucial for assessing the true financial performance of Expense Reduction Analysts.