Does Expense Reduction Analysts currently administer a Marketing Fund?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
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Marketing Fund
We have the right to establish and administer a brand development and marketing fund (the "Marketing Fund"), and we currently administer such a Marketing Fund as of the Issuance Date of this Disclosure Document (Sections 15.2 to 15.4 of the Franchise Agreement). The primary purpose of the Marketing Fund is to produce collateral material and marketing programs. We expect that we will use an advertising agency to prepare the programs, but some of the programs may be prepared in-house or by outside services. We may use the fund to pay for (i) market research, advertising materials, media space and time for a national or regional marketing program, a referral program and public relations activities; (ii) the development of collateral and advertising materials and brochures, internet and web-based downloads; (iii) our reasonable costs and overhead that we may incur in activities reasonably related to the direction and implementation of the Marking Fund; and/or (iv) any other purpose we believe would benefit the System. Currently, there is a Franchise & Marketing Advisory Council ("FMAC"), an advisory council composed of up to five (5) franchisees, to advise us regarding the management of the marketing fund. The members of the FMAC are appointed by ERA Group. We will give preference to marketing fund projects that are system wide in scope, but we may allocate some Marketing Fund money to regional groups of Franchisees or individual Franchisees when we consider it desirable. The advice of the FMAC is not binding on us. We reserve the unqualified right to decide, in our sole discretion, where, when and
how marketing fund money will be spent. We also have the right to require that the FMAC be formed, changed, dissolved or merged at any time. (Section 15.3 of the Franchise Agreement)
You will make monthly Marketing Fund contributions ("Marketing Fund Contributions") of up to three percent (3%) of Net Cumulative Receipts. There is no requirement that we spend a specified amount of marketing fund money on advertising in your geographic area. Company-owned or related Consulting Businesses may, but will not be obligated to, contribute to the Marketing Fund in the same manner that each Consulting Business is required to contribute. Your SpendVue Fees paid may be reimbursable from your Marketing Fund Contributions.
We are not required to audit the Marketing Fund, but we will provide you with a basic accounting of the Marketing Fund from the prior year if you request such an accounting in writing within 120 days after the fiscal year end. (Section 15.3(5) of the Franchise Agreement)
Any unexpended Marketing Fund Contributions will be retained for use in connection with the Marketing Fund during the following year. We do not use Marketing Fund contributions to pay for advertising that solicits the sale of franchises.
During our fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds, with 37% of the funds available for future programs. Spending for 2024 was as follows: 41.15% of its funds on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs.
Regional Cooperatives and Local Marketing
You do not have to participate in a regional advertising cooperative or expend a specified amount on local advertising.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–36)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, Expense Reduction Analysts currently administers a Marketing Fund. The primary purpose of this fund is to produce collateral material and marketing programs. Expense Reduction Analysts expects to use an advertising agency to prepare the programs, but some programs may be prepared in-house or by outside services.
The Marketing Fund may be used to pay for market research, advertising materials, media space and time for national or regional marketing programs, referral programs, public relations activities, the development of collateral and advertising materials and brochures, internet and web-based downloads, Expense Reduction Analysts' reasonable costs and overhead related to the fund's direction, and any other purpose Expense Reduction Analysts believes would benefit the Expense Reduction Analysts system. Franchisees contribute up to 3% of Net Cumulative Receipts to the Marketing Fund monthly.
Expense Reduction Analysts has the right to establish and administer the Marketing Fund. There is a Franchise & Marketing Advisory Council (FMAC) composed of up to five franchisees that advises Expense Reduction Analysts regarding the fund's management; the members of the FMAC are appointed by ERA Group. Expense Reduction Analysts gives preference to system-wide projects but may allocate money to regional groups of franchisees or individual franchisees. The advice of the FMAC is not binding on Expense Reduction Analysts, and Expense Reduction Analysts has the sole discretion to decide how the marketing fund money will be spent. Expense Reduction Analysts is not required to audit the Marketing Fund but will provide a basic accounting of the fund from the prior year if requested in writing within 120 days after the fiscal year end.
During the fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds, with 37% of the funds available for future programs. Spending for 2024 was as follows: 41.15% of its funds on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs.