To whom must an Expense Reduction Analysts franchisee pay the Marketing Fund Contribution?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute to the Marketing Fund by paying to the Franchisor (or its nominee) the Marketing Fund Contribution in accordance with the terms specified in Section 11 of the Data Sheet.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, franchisees are required to pay the Marketing Fund Contribution to the Franchisor or its nominee.
The Marketing Fund Contribution is a percentage of the franchisee's Net Cumulative Receipts, specifically 3% of the Net Cumulative Receipts for the immediately preceding month. This contribution is used for marketing activities relevant to the ERA Network within the franchisee's territory. The franchisor has the authority to administer the Marketing Fund and determine how the funds are spent, with the option to seek non-binding advice from the FMAC (Franchise Marketing Advisory Council).
Expense Reduction Analysts franchisees should note that the franchisor is not obligated to spend any specific portion of the Marketing Fund in any particular area or to benefit all franchisees directly or on a pro-rata basis. Upon termination of the franchise agreement, the franchisee is not entitled to any of the money held in the Marketing Fund. The franchisor can also reimburse itself from the Marketing Fund for reasonable costs and overhead related to the fund's direction and implementation.