Can I divert business from the Expense Reduction Analysts franchised business to a competing business?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except as otherwise approved in writing by the Franchisor, I shall not, while in my position with the Franchisee, for myself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or limited liability company, own, maintain, engage in, be employed by, or have any interest in any other business that: (i) is involved in cost reduction and supplier relationship management consulting similar to the Franchised Business and/or that features, offers and/or sells products and services similar to the those offered and sold by the Franchised Business and/or other ERA Group franchises (a "Competing Business"); or (iii) grants or has granted franchises or licenses, or establishes or has established joint ventures, for one or more Competing Businesses. I also agree that I will not undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of Franchisee for any competitive business purpose. All parties acknowledge and agree that there is no intent to prohibit me from obtaining employment or engagement with another franchisee of Franchisor.
7.1Post-Term Restrictive Covenant for Consulting Employee of Franchised Business or Manager, Officers, Directors of the Franchisee. In the event I am a manager of the Franchised Business, or an officer, director, manager or partner of the Franchisee that has not already executed a Personal Guaranty agreeing to be bound by the terms of the Franchise Agreement, then I further agree that I will not be involved in a Competing Business of any kind for a period of two (2) years after the expiration or termination of my employment with the Franchisee for any reason: (i) at the Premises; (ii) within the Area; or (iii) within a 50-mile radius of (a) the perimeter of the Area, or (b) any other Area granted by the Franchisor to any other Franchised Business at the time my employment with the Franchisee ceases through the date of my involvement with the Competing Business. I also agree that I will not be involved in the franchising or licensing of any Competing Business at any location, or undertake any action to divert business from the Franchised Business to any Competing Business or solicit any of the former customers or employees of the Franchisee for any competitive business purpose, during this two (2) year period following the termination or expiration of my employment or independent contractor relationship with the Franchisee. All parties acknowledge and agree that there is no intent to prohibit me from obtaining employment or engagement with another franchisee of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, as a franchisee, you are restricted from diverting business from the franchised Expense Reduction Analysts business to a competing business. Specifically, while in a position with the Expense Reduction Analysts franchise, you cannot own, maintain, engage in, be employed by, or have any interest in any other business involved in cost reduction and supplier relationship management consulting similar to the franchised business. This includes businesses that offer similar products and services or grant franchises or licenses for competing businesses.
The agreement explicitly states that franchisees cannot undertake any action to divert business from the Expense Reduction Analysts franchised business to any competing business or solicit former customers or employees for any competitive business purpose. However, it is acknowledged that there is no intention to prevent individuals from seeking employment or engagement with another franchisee of Expense Reduction Analysts.
Furthermore, if you are a manager, officer, director, manager, or partner of the Expense Reduction Analysts franchisee, you agree not to be involved in a competing business for two years after the termination of your employment. This restriction applies at the premises, within the area, or within a 50-mile radius of the area or any other area granted to another franchised business. This also includes not undertaking any action to divert business from the franchised business or solicit customers or employees for a competitive business purpose during this two-year period.
These restrictions are designed to protect Expense Reduction Analysts' interests and maintain the integrity of its franchise system. Prospective franchisees should carefully consider these limitations and how they might impact their future business activities before entering into a franchise agreement.