Can Expense Reduction Analysts designate themselves or their affiliates as an Approved Supplier in the future?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to designate us or any of our affiliates as an Approved Supplier with respect to any item you must purchase in connection with your Consulting Business in the future.
Currently, we have Approved Suppliers for certain items that you must purchase or license, as applicable, in connection with the establishment and/or operation of your Consulting Business, including without limitation: (i) the Centralized Billing Service; (ii) the Proprietary Software; (iii) other office computer software; (iv) email accounts and services including document signing services; (v) marketing materials; and (vi) certain portions of our ISMP program.
We may develop or substitute other proprietary products for use in your Consulting Business, including private-label products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
In our last fiscal year ending December 31, 2024, we generated $196,365 (or approximately 2.7% of our total revenue of $7,207,289 from purchases of these types.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–25)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, Expense Reduction Analysts retains the right to designate themselves or their affiliates as an Approved Supplier for any item a franchisee is required to purchase in connection with their Consulting Business. This means that in the future, Expense Reduction Analysts could require franchisees to purchase goods or services from them or their affiliated companies.
Currently, Expense Reduction Analysts or its affiliates are the only Approved Supplier for Proprietary Software, email accounts, document signing services, and technology covered under the Technology Fee. While not required, Expense Reduction Analysts will review and help administer Approved Services to ERA Threshold Accounts, while their affiliate will do the same with respect to ERAC Accounts. Franchisees are required to use SpendVue and SourceVue, with fees for SpendVue paid to Expense Reduction Analysts, although these fees may be reimbursable from Marketing Fund Contributions.
Expense Reduction Analysts also has the option to develop or substitute other proprietary products, including private-label products bearing their Marks, and require franchisees to purchase these items from them or their affiliates. While there isn't a formal process for approving alternative suppliers, Expense Reduction Analysts will review such proposals on a case-by-case basis, retaining sole discretion in the decision. This policy allows Expense Reduction Analysts to control the supply chain and potentially generate additional revenue through required purchases, as they generated $196,365, or approximately 2.7% of their total revenue of $7,207,289 from these types of purchases in the last fiscal year ending December 31, 2024.