Does the 5% cost of collection for Expense Reduction Analysts include fees charged by the collection agency?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the 5% cost of collection does not include fees charged by the collection agency. This means that if Expense Reduction Analysts needs to use a collection agency to recover unpaid amounts, the franchisee will be responsible for covering the collection agency's fees in addition to the 5% cost of collection.

This could potentially increase the expenses associated with debt recovery for the franchisee. It is important for prospective franchisees to understand that the 5% cost of collection covers Expense Reduction Analysts' internal costs, but external collection agency fees are a separate expense.

Franchisees should factor in the potential for these additional collection agency fees when assessing the financial risks and potential costs associated with operating an Expense Reduction Analysts franchise. Understanding the full scope of collection-related expenses is crucial for accurate financial planning and risk management.