What is an 'Assignable Client' in the context of an Expense Reduction Analysts franchise agreement?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, an 'Assignable Client' is defined as a client for whom the franchisee has contracted to perform services beyond the expiration date of their franchise agreement. This definition is important because it dictates what happens to those client contracts when the franchise agreement ends.

Specifically, Expense Reduction Analysts requires that any client contracts extending beyond the franchise term be assigned to either another franchisee or back to the franchisor itself. This ensures continuity of service for the client and prevents a former franchisee from continuing to operate within the Expense Reduction Analysts system independently after their agreement concludes.

If a franchisee fails to properly assign these client contracts to an authorized 'Assigned Franchisee' by the time their agreement expires or is terminated, the contracts are automatically assigned to the franchisor. Importantly, the franchisee acknowledges that they will not receive any compensation for these 'Assignable Client' contracts upon the expiration or termination of their Expense Reduction Analysts franchise agreement.