For Expense Reduction Analysts, what balance must be maintained in the franchisee's checking account?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees must maintain a minimum balance in their checking account. Specifically, the franchisee is required to maintain a balance at least as great as their Minimum Royalty Fee. This account is also used for electronic funds transfers (EFT). Franchisees must sign an EFT authorization form, included as Exhibit 3 in the agreement, or any other form required by the bank, to allow Expense Reduction Analysts to withdraw and deposit funds via ACH/EFT transfer.

This requirement ensures that Expense Reduction Analysts can reliably collect royalty fees from its franchisees. By mandating a minimum balance equal to the Minimum Royalty Fee, Expense Reduction Analysts reduces the risk of non-payment due to insufficient funds. This arrangement provides a level of financial security for the franchisor and streamlines the payment process.

For a prospective Expense Reduction Analysts franchisee, this means carefully managing their business finances to ensure the checking account always holds at least the Minimum Royalty Fee amount. Failure to maintain this balance could lead to penalties or other actions by the franchisor, as outlined in the franchise agreement. It is important to understand what the Minimum Royalty Fee is and factor that into the financial planning for the franchise.