Are the Expense Reduction Analysts financial statements presented individually or on a consolidated basis?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the accompanying consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries, which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Expense Reduction Analysts, Inc. and subsidiaries as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the financial statements presented are consolidated. The independent auditor's report explicitly states that they audited the "consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries." This includes consolidated balance sheets, statements of operations, changes in stockholders' equity, and cash flows.
The principle of consolidation includes the accounts of Expense Reduction Analysts, Inc. and its wholly owned subsidiaries, which are 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). Expense Reduction Analysts owns 94% of ERAC. All intercompany transactions and balances are eliminated during the consolidation process to provide a clear financial picture of the entire organization.
The use of consolidated financial statements is a standard accounting practice when a parent company controls one or more subsidiaries. This approach provides a comprehensive view of the financial health and performance of the entire economic entity, which is crucial for potential investors and franchisees to assess the overall stability and profitability of Expense Reduction Analysts.