Are the Expense Reduction Analysts financial statements consolidated?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the financial statements are consolidated. The Independent Auditors' Report explicitly states that they audited the "consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries." This indicates that the financial statements include the financial results of the parent company, Expense Reduction Analysts, Inc., along with its subsidiaries.

Specifically, Note 2, titled "Summary of Significant Accounting Policies," details the "Principles of Consolidation." It states that "The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Expense Reduction Analysts Global Insurance Consulting, Inc. (ERAGIC) and SDCo, LLC (SDCO), as well as its majority owned subsidiary, Expense Reduction Analysts Consultants, Inc. (ERAC)." The note also mentions that Expense Reduction Analysts owns 94% of ERAC. Furthermore, "All intercompany transactions and balances have been eliminated in consolidation," which is a standard practice in consolidated financial statements to avoid double-counting.

For a prospective franchisee, this means that the financial performance presented reflects the overall financial health of Expense Reduction Analysts as a corporate entity, including its various subsidiaries and their operations. Understanding the principles of consolidation is crucial for assessing the financial stability and performance of the entire Expense Reduction Analysts organization, rather than just the parent company alone. This gives a more complete picture of the financial resources available to support the franchise system.