Is the Expense Reduction Analysts franchisee required to license proprietary software?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
eases, not decreases.
4. Technology Fee.
Currently, you are required to license and use proprietary designated management information software ("Proprietary Software") from us or an Approved Supplier (as that term is defined in Item 8), for use in connection with your Consulting Business, as specified by us in the Manuals. The amount of software fees and the manner and timing of payment may change from time to time as we update the Computer System (as defined in Item 11) as part of our evolving System.
In addition to the Technology Fee, we reserve the right to require that you pay us or our designated vendor(s) a fee (which may be collected monthly, quarterly, or annually via automatic EFT withdraws with notice) associated with other technology requirements, including but not limited to maintaining required computer hardware and software, and any other technology used in the operation of your Consulting Business, and such payment shall be made in the manner prescribed by us or the designated vendor(s), as applicable ("Technology Fee"). We reserve the right to change the amount of the Technology Fee or incorporate additional technology fees as changes are made to the System's hardware, software and other computer requirements or as required by the third-party vendor(s) or by any regulatory agency. As of the Issuance Date, the license fees associated are included in the current Technology Fee.
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- SpendVue Fees. SpendVue is proprietary software owned by franchisor and required to be used in all projects. SpendVue assists the presentation of the benefit of franchisee's expense reduction offering to its clients. The charge is currently 1.5% of the Net Cumulative Receipts which sum is paid to Franchisor whenever the client pays the project fees. If the prospective client does not engage franchisee's services, no fees will be charged to franchisee for using SpendVue in the client engagement process. Your SpendVue Fees paid may be reimbursable from your Marketing Fund Contributions. We may develop or substitute other cost intelligence assessment tools and or proprietary products for use in your Consulting Business, including private-label products that bear our Marks. If we update or replace SpendVue you will be required to use and pay fees for any such alternate product(s).
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- Training and Coaching Fee. The initial franchise fee includes initial franchise training for you or your Designated Principal;
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, franchisees are required to license and use proprietary software. Specifically, franchisees must license designated management information software from Expense Reduction Analysts or an Approved Supplier for use in their Consulting Business, as detailed in the manuals. The fees and payment terms for this software may change as the Computer System evolves.
In addition to the general technology licensing requirement, Expense Reduction Analysts franchisees are also mandated to use SpendVue, which is proprietary software owned by the franchisor. SpendVue is used to present the benefits of the franchisee's expense reduction services to clients. The fee for SpendVue is 1.5% of the Net Cumulative Receipts, paid to Expense Reduction Analysts when the client pays the project fees. If a prospective client does not engage the franchisee's services, no SpendVue fees are charged for its use during the client engagement process.
Expense Reduction Analysts also reserves the right to impose additional technology fees for maintaining required computer hardware and software, and any other technology used in the operation of the Consulting Business. These fees may be collected monthly, quarterly, or annually via automatic EFT withdrawals with notice. The FDD states that license fees are included in the current Technology Fee as of the Issuance Date. Furthermore, the franchisee will be charged Expense Reduction Analysts' then-current fee for each additional IT user account requested, which may include extra software licenses.