Are the fees outlined in Item 7 of the Expense Reduction Analysts FDD refundable?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
Explanatory Notes to Item 7 Chart:
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- General Note. Except as otherwise set forth in this Item, all fees noted in this Item 7 are payable to us and are non-refundable. This Item 7 shows estimated expenses through the third month of operation. We and our standard franchise offering assume that you will operate from a home office without hiring employees from the very beginning, and that you already own a vehicle that you will use in the operation of your Consulting Business. If you choose not to operate from a home office, you may incur additional fees relating to the operation of your Consulting Business, including but not limited to increased real property, furniture, equipment, insurance, permit and license-related expenses. None of these estimated expenses are refundable, except for insurance, which may be partially refundable from the broker or insurer. We do not offer direct or indirect financing for any of the expenses listed above.
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- Initial Franchise Fee. The Initial Franchise Fee is non-refundable. The Initial Franchise Fee is uniform for all franchisees except for those franchises sold under the VetFran® initiative. ERA Group proudly offers VetFran® qualified veterans a discount of five-thousand US Dollars ($5,000) off the Initial Franchise Fee.
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee 2 | $69,900 | Single lump sum | Due at signing of the Franchise | ERA Group |
| Initial Training and | $0 - $10,000 | As incurred | Agreement. Before Training | ERA Group |
| Coaching Fee 3 | ||||
| Training Expense 3 | $2,000 to $4,000 | As incurred | Before, during and after training | Suppliers of Travel, Meals and Accommodations |
| Insurance 5 | $1,000 to $3,500 | Varies | Varies | Broker and Insurer |
| Professional Fees 6 | $0 to $5,000 | Varies | Before opening | Attorney and Accountant |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–21)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, most fees outlined in Item 7 are non-refundable. The general note in Item 7 states that all fees are non-refundable unless otherwise specified. The initial franchise fee of $69,900 is explicitly stated as non-refundable. However, insurance payments, which range from $1,000 to $3,500, may be partially refundable from the broker or insurer.
Professional fees, which can range from $0 to $5,000 for assistance from an attorney, accountant, or other consultants, are typically not refundable. The initial training and coaching fee ranges from $0 to $10,000 and is paid to Expense Reduction Analysts. Training expenses, estimated between $2,000 and $4,000, cover travel, meals, and accommodations and are paid to the respective suppliers.
Prospective Expense Reduction Analysts franchisees should be aware that while most initial investment costs are non-refundable, there is a possibility of a partial refund on insurance payments. It is important to clarify the specific terms and conditions of each fee with Expense Reduction Analysts and the respective service providers to understand the refund policies fully. Understanding which fees are non-refundable is essential for financial planning and risk assessment before investing in the franchise.