What is the 'Centralized Billing Service' and how does it function for Expense Reduction Analysts franchisees?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
y the Franchisor any unpaid debt You may have to the Franchisor.
- (5) All amounts or fees due as the result of this Agreement shall be considered net of taxes, fees or contributions, and any such taxes, fees or contributions must be included where applicable and paid additionally in conformity to the legislation applied as of the tax collectability date.
6. CENTRALIZED BILLING SERVICE
6.1 Application of this Part
- (1) In the event the Franchisor designates an approved Centralized Billing Service, You shall use such Centralized Billing Service, unless otherwise specified in writing by the Franchisor. This service is provided free of charge to You. You would also be required to follow the policies and guidelines for using the Centralized Billing Service, which will be set out in the ERA Manuals or otherwise in writing by the Franchisor.
- (2) The Franchisor is not obliged to arrange for a Centralized Billing Service but may at its discretion.
- (3) If the Centralized Billing Service is adopted, You accept that all payments made by Your clients in Your favor for the business and services You provide be transferred directly to a bank account associated with the Centralized Billing Service (the "Centralized Billing Account"), pursuant to this Section 6.1 and template Centralized Billing Account administrative forms designated by the Franchisor, the ERA Manuals, or as the Franchisor otherwise specifies in writing.
- (4) With respect to Section 6.1(3), after the aforesaid payments have been made into the Centralized Billing Account for the preceding month, the Centralized Billing Service, upon the Payment Date fixed on the 10th day of each calendar month (or the next business day following the 10th day of each month), will pay You, in the current bank account indicated by You, an amount calculated by deducting the Royalty Fee and the Marketing Fund Contribution from the payments received from Your clients according to any amounts due to Joint Venture partner(s) and entered in the relative project form on the ERA Management Information System (i.e. ERA EMS/Dynamics). The Royalty Fee will be offset against Your Minimum Royalty Fee; the reconciliation period for the Minimum Royalty Fee is the Year.
6.2 Client Revenue Report
On or before the Payment Date of each Month, the Franchisor will issue a Client Revenue Report for the preceding Month setting out the Net Cumulative Receiptsreceived for that Month and the amount deducted from the Net Cumulative Receipts by the Franchisor in accordance with Section 6.1(4). To enable the Franchisor to provide the Client Revenue Report, You must provide to the Franchisor any information reasonably required or requested by the Franchisor.
6.3 Centralized Billing Service and Remissions
You are entitled to receive, on the Payment Date of each Month, subject to the terms of this Agreement, the Net Cumulative Receipts for the preceding Month less the following amounts:
the Royalty Fee (if not already paid by Direct Debit); the Marketing Fund Contribution; and any other amount owing by You to the Franchisor under this Agreement.
6.4 Bad Debts
- (1) As part of the Centralized Billing Service, the Franchisor may (at Your request and cost) provide assistance in connection with collecting payment from Your Clients. However, nonpayment by any Client is not the Franchisor's responsibility. You will use Your best endeavors to collect payment from the Client in accordance with any policies or guidelines issued by the Franchisor.
- (2) The Franchisor is not obliged to make any payment to You with respect to Services provided to a Client for which the Client fails or refuses to pay the amount charged.
- (3) In the event that the Franchisor is required to refund any payment or provides a credit to Your Client, the Franchisor will:
- (a) require You to reimburse the Franchisor for any amount remitted to You in respect of the amount attributed to the refund or credit within three (3) business days of a notice for reimbursement issued by the Franchisor to You;
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Centralized Billing Service is a client invoicing and/or receipt collection service that Expense Reduction Analysts may designate. If Expense Reduction Analysts designates an approved Centralized Billing Service, franchisees are required to use it, unless Expense Reduction Analysts specifies otherwise in writing. This service is provided to the franchisee free of charge, and franchisees must adhere to the policies and guidelines for its use, as outlined in the ERA Manuals or in writing by Expense Reduction Analysts.
If the Centralized Billing Service is implemented, all client payments for the franchisee's services must be directly transferred to a bank account associated with the service, known as the Centralized Billing Account. On the 10th day of each month (or the next business day if the 10th falls on a non-business day), the Centralized Billing Service will pay the franchisee the amount calculated by deducting the Royalty Fee and the Marketing Fund Contribution from the payments received from the franchisee's clients. Any amounts due to Joint Venture partners and entered in the ERA Management Information System (ERA EMS/Dynamics) will also be deducted. The Royalty Fee will be offset against the franchisee's Minimum Royalty Fee, with the reconciliation period being the year.
On or before the payment date of each month, Expense Reduction Analysts will issue a Client Revenue Report for the preceding month. This report will detail the Net Cumulative Receipts received for that month and the amounts deducted by Expense Reduction Analysts. To facilitate the creation of this report, franchisees must provide any information reasonably required or requested by Expense Reduction Analysts.
Expense Reduction Analysts may also provide assistance in collecting payments from the franchisee's clients as part of the Centralized Billing Service, but nonpayment by a client is not the responsibility of Expense Reduction Analysts. Franchisees are expected to use their best efforts to collect payments, following any policies or guidelines issued by Expense Reduction Analysts. Expense Reduction Analysts is not obligated to make any payment to the franchisee for services provided to a client who fails or refuses to pay. If Expense Reduction Analysts is required to refund any payment or provide a credit to the client, the franchisee must reimburse Expense Reduction Analysts for any amount remitted to them in respect of the refund or credit within three business days of notice, or Expense Reduction Analysts may withhold future gross revenue until the amount is repaid.