What is the duration of the Start-Up Phase for an Expense Reduction Analysts franchise, during which participation in the ISMP is possible?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
vance written notice. Any suspension of the Minimum Royalty Fee as described in this Section will be subject to the Franchisor's periodic review and receipt by the Franchisor of Your circumstances, which You must support with appropriate documentation, and does not waive Franchisor's right to demand exact compliance with any of the terms herein.
- (4) You may elect to participate in the ISMP during the Start-Up Phase, which begins on Your Commencement Date and shall continue for up to eighteen (18) months. If You participate in the ISMP, You will invest in an individual marketing program for Your ERA Business approved by the Franchisor.
- (a) If You elect to participate in the ISMP, You must:
- (i) complete an ISMP Marketing and Activity Plan that is reviewed and approved by the Franchisor;
- (ii) actively participate in a formal monthly review of the approved ISMP Marketing and Activity Plan; and
- (iii) on a monthly basis, achieve the activities required in the ISMP Marketing and Activity Plan.
- (b) If you participate in the ISMP and comply with its terms, Franchisor shall deduct the amount of ISMP funds spent by you each month during the ISMP from your obligations to pay Minimum Royalty Fees for the current month. The maximum credit applied shall not be more than an amount equal to $500 deducted from your monthly Minimum Royalty Fee for the current month.
- (c) You agree and acknowledge that the Franchisor's review and approval of Your ISMP Marketing and Activity Plan does not constitute a representation, w
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Start-Up Phase for a new franchisee begins on the Commencement Date and continues for up to 18 months. During this Start-Up Phase, franchisees have the option to participate in the Initial Special Marketing Program (ISMP).
If a franchisee chooses to participate in the ISMP, they must invest in a marketing program for their Expense Reduction Analysts business that has been approved by the franchisor. This involves completing an ISMP Marketing and Activity Plan that the franchisor reviews and approves, actively participating in monthly reviews of the plan, and achieving the activities outlined in the plan on a monthly basis.
Franchisees who participate in the ISMP and comply with its terms may receive a credit towards their Minimum Royalty Fees. Expense Reduction Analysts will deduct the amount of ISMP funds spent each month from the franchisee's Minimum Royalty Fee obligations for that month. However, the maximum credit a franchisee can receive is $500 per month. It is important to note that Expense Reduction Analysts' approval of the ISMP Marketing and Activity Plan does not guarantee any specific level of success or profit for the franchisee's business, as success largely depends on the franchisee's abilities as an independent businessperson.