What are the approved methods for making payments owed to the Expense Reduction Analysts Franchisor?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) You must make all payments owed by You to the Franchisor pursuant to this Agreement by means of: (i) the Centralized Billing Service described in Section 6.1; and/or (ii) direct debit from Your business bank account into a bank account nominated by the Franchisor, in which case you must complete the necessary forms to authorize the Franchisor in connection with that account.
- (2) You must establish a checking account in which You maintain a balance at least as great as Your Minimum Royalty Fee and sign an electronic funds transfer ("EFT") authorization form, attached as Exhibit 3 to this Agreement, or in any other form required by the bank to enable us to withdraw funds from and deposit funds to the account by ACH/EFT transfer.
- (3) The Franchisor may specify a different method or bank account for payment of moneys from the method specified in this Section 5.5 by providing notice to You in writing. You must commence to use that new method within seven (7) days of receipt of the written notice from the Franchisor.
- (4) You must not change or alter Your business bank account or withdraw or cancel Your direct debit authorization without the prior written consent of the Franchisor, which the Franchisor will not unreasonably withhold so long as you complete the necessary forms to authorize the Franchisor in connection with the new account.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees must adhere to specific methods for making payments to the franchisor. The approved methods are using the Centralized Billing Service and direct debit from the franchisee's business bank account.
The Centralized Billing Service, as described in Section 6.1 of the agreement, is a primary method for handling payments. Alternatively, franchisees can authorize direct debit from their business bank account into an account designated by Expense Reduction Analysts. To facilitate this, franchisees must complete the necessary authorization forms. Additionally, franchisees are required to maintain a checking account with a balance at least as great as their Minimum Royalty Fee and sign an electronic funds transfer (EFT) authorization form to allow Expense Reduction Analysts to withdraw funds.
Expense Reduction Analysts retains the right to modify the accepted payment method or bank account with written notice to the franchisee. Franchisees are then obligated to adopt the new payment method within seven days of receiving this notice. Furthermore, franchisees cannot alter their business bank account or cancel direct debit authorizations without prior written consent from Expense Reduction Analysts, which the franchisor will not unreasonably withhold if the franchisee completes the required authorization forms for the new account.
Failure to make timely payments to Expense Reduction Analysts will result in interest charges on the outstanding amount, calculated at the Interest Rate from the date the payment was due until it is paid. This interest accrues daily and is payable on demand, potentially impacting the franchisee's financial obligations.