What are some examples of expenses that the Expense Reduction Analysts Marketing Fund may cover?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
0 deducted from your monthly Minimum Royalty Fee for the current month.
Marketing Fund
We have the right to establish and administer a brand development and marketing fund (the "Marketing Fund"), and we currently administer such a Marketing Fund as of the Issuance Date of this Disclosure Document (Sections 15.2 to 15.4 of the Franchise Agreement). The primary purpose of the Marketing Fund is to produce collateral material and marketing programs. We expect that we will use an advertising agency to prepare the programs, but some of the programs may be prepared in-house or by outside services. We may use the fund to pay for (i) market research, advertising materials, media space and time for a national or regional marketing program, a referral program and public relations activities; (ii) the development of collateral and advertising materials and brochures, internet and web-based downloads; (iii) our reasonable costs and overhead that we may incur in activities reasonably related to the direction and implementation of the Marking Fund; and/or (iv) any other purpose we believe would benefit the System. Currently, there is a Franchise & Marketing Advisory Council ("FMAC"), an advisory council composed of up to five (5) franchisees, to advise us regarding the management of the marketing fund. The members of the FMAC are appointed by ERA Group. We will give preference to marketing fund projects that are system wide in scope, but we may allocate some Marketing Fund money to regional groups of Franchisees or individual Franchisees when we consider it desirable. The advice of the FMAC is not binding on us. We reserve the unqualified right to decide, in our sole discretion, where, when and
how marketing fund money will be spent. We also have the right to require that the FMAC be formed, changed, dissolved or merged at any time. (Section 15.3 of the Franchise Agreement)
You will make monthly Marketing Fund contributions ("Marketing Fund Contributions") of up to three percent (3%) of Net Cumulative Receipts. There is no requirement that we spend a specified amount of marketing fund money on advertising in your geographic area. Company-owned or related Consulting Businesses may, but will not be obligated to, contribute to the Marketing Fund in the same manner that each Consulting Business is required to contribute. Your SpendVue Fees paid may be reimbursable from your Marketing Fund Contributions.
We are not required to audit the Marketing Fund, but we will provide you with a basic accounting of the Marketing Fund from the prior year if you request such an accounting in writing within 120 days after the fiscal year end. (Section 15.3(5) of the Franchise Agreement)
Any unexpended Marketing Fund Contributions will be retained for use in connection with the Marketing Fund during the following year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–36)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Marketing Fund is used to produce collateral material and marketing programs. Expense Reduction Analysts may use the fund to pay for market research, advertising materials, media space and time for national or regional marketing programs, referral programs, and public relations activities. The fund may also cover the development of collateral and advertising materials and brochures, internet and web-based downloads, and Expense Reduction Analysts' reasonable costs and overhead for activities related to the direction and implementation of the Marketing Fund. Additionally, the fund can be used for any other purpose that Expense Reduction Analysts believes would benefit the System.
For the fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds. A significant portion, 41.15%, was allocated to administration. Other expenditures included 26.28% for media placement, 29.85% on tools, and 2.72% on production costs. The remaining 37% of the funds were available for future programs.
Expense Reduction Analysts retains the right to decide how marketing fund money will be spent and is not required to spend a specific amount in any franchisee's geographic area. Franchisees contribute up to 3% of Net Cumulative Receipts to the Marketing Fund monthly. Company-owned or related Consulting Businesses may contribute to the Marketing Fund but are not obligated to do so in the same manner as franchisees. SpendVue Fees paid by franchisees may be reimbursable from their Marketing Fund Contributions.