What is the definition of 'Centralized Billing Service' for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, the Centralized Billing Service is a system where, if designated by Expense Reduction Analysts, the franchisee is required to use it unless otherwise specified in writing by Expense Reduction Analysts. This service is provided free of charge to the franchisee, who must adhere to the policies and guidelines 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 Centralized Billing Service, following the administrative forms and guidelines provided by Expense Reduction Analysts. 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, as indicated in the project form on 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.
Expense Reduction Analysts is not obligated to provide a Centralized Billing Service but may do so at its discretion. On or before the payment date of each month, Expense Reduction Analysts will issue a Client Revenue Report for the preceding month, detailing the Net Cumulative Receipts received and the amounts deducted. The franchisee must provide any information reasonably required by Expense Reduction Analysts to enable the Franchisor to provide the Client Revenue Report.