What details of the proposed assignment of an Expense Reduction Analysts business must be provided to the Franchisor?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) You give to the Franchisor all details of the proposed assignment including a copy of the contract for the sale of the ERA Business and any other agreements between You and the assignee;
- (2) You establish, to the Franchisor's reasonable satisfaction, that the proposed assignee:
- (a) is a reputable and responsible person, having the financial resources and business experience and capabilities necessary to operate the Business successfully; and
- (b) is not, or could not be reasonably regarded as, a market competitor of the Franchisor or of the ERA Network;
- (3) You pay to the Franchisor the Assignment Fee and all money which is payable under this Agreement up to the date of the assignment; the payment of the aforesaid amount must be made by credit transfer to the bank account specified by the Franchisor;
- (4) You comply with the Franchisor's Business transfer requirements and procedures;
- (5) At the option of the Franchisor, the assignee executes a franchise agreement in the form then used by the Franchisor for ERA Businesses, or a deed of assignment of this Agreement in a form required by the Franchisor;
- (6) The assignee executes any other documents then customarily used by the Franchisor for ERA Businesses;
- (7) The assignee successfully completes at his cost the Franchisor's Foundational Training Program for new ERA Businesses and pays the costs of the other services, including coaching, normally provided to new ERA consultants (see Training Fee under Section 12 in the Data Sheet);
- (8) In the event that You request the Franchisor to sell Your Business, or that You sell Your Business to a candidate introduced to You by the Franchisor or by a party delegated by the Franchisor, a sales commission equivalent to 30% of the Initial Fee specified in Section 7 of the Data Sheet will be payable to the Franchisor, in addition to the Training Fee described in (7) above; and
- (9) You shall also be solely responsible for any third-party broker fees in connection with the assignment of Your Business.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, if a franchisee wishes to assign their business to someone else, they must provide Expense Reduction Analysts with specific details about the proposed assignment. This includes a copy of the contract for the sale of the Expense Reduction Analysts business, as well as any other agreements between the franchisee and the party to whom they are assigning the business (the assignee).
Expense Reduction Analysts also requires that the franchisee demonstrate, to the franchisor's satisfaction, that the proposed assignee is a reputable and responsible person. This means the assignee must have the financial resources, business experience, and capabilities necessary to successfully operate the Expense Reduction Analysts business. Additionally, the assignee must not be a market competitor of Expense Reduction Analysts or its network, or be reasonably regarded as one.
Furthermore, the franchisee must pay Expense Reduction Analysts the Assignment Fee, as well as any outstanding money owed under the Franchise Agreement up to the date of the assignment. This payment must be made via credit transfer to a bank account specified by Expense Reduction Analysts. The franchisee must also comply with Expense Reduction Analysts' business transfer requirements and procedures. At Expense Reduction Analysts' option, the assignee may be required to execute a franchise agreement or a deed of assignment, and any other documents that Expense Reduction Analysts customarily uses for new franchisees. The assignee will also need to complete the Expense Reduction Analysts' Foundational Training Program at their own cost and pay for other services like coaching that are normally provided to new consultants.
If the franchisee requests Expense Reduction Analysts to sell their business, or sells to a candidate introduced by Expense Reduction Analysts, a sales commission equivalent to 30% of the Initial Fee (as specified in Section 7 of the Data Sheet) will be payable to Expense Reduction Analysts, in addition to the training fee. The franchisee is solely responsible for any third-party broker fees associated with the assignment of their business.