What is the Expense Reduction Analysts franchisee solely responsible for negotiating with the Assigned Franchisee?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Once Franchisor has provided you with the details above, You will be solely responsible for negotiating and entering into a form of Transition Agreement for each Assignable Client and corresponding Assignable Client Contract Set with an Assigned Franchisee that Franchisor did not object to under Section 26.3(2) above. Upon the signing of any Transition Agreement, you must promptly provide a fully-executed copy of that Transition Agreement to the Franchisor for its records only.
- (4) If a given Assignable Client is assigned to an authorized Assigned Franchisee prior to the expiration of this Agreement, then that Assigned Franchisee will be solely responsible for: (i) performing Your obligations under the Assignable Client Contract Set; and (ii) paying You the Phase-Out Consideration that the Assigned Franchisee agreed You are due under the Transition Agreement for that Assignable Client. The Franchisor will not have any obligation or liability in connection with any Transition Agreement You choose to execute.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, a franchisee is solely responsible for negotiating and entering into a Transition Agreement with an Assigned Franchisee for each Assignable Client and their corresponding Assignable Client Contract Set. This occurs when the franchisee wishes to assign clients to another franchisee at least 90 days prior to the expiration of their franchise agreement. The franchisor must first approve the potential Assigned Franchisee.
This means that the outgoing franchisee has the responsibility to come to an agreement with another Expense Reduction Analysts franchisee regarding the terms of transferring client relationships. This includes the specifics of the services to be provided and the contractual obligations that the new franchisee will assume. The Transition Agreement formalizes this transfer, outlining the responsibilities and expectations of both parties.
Expense Reduction Analysts does not get involved in the negotiation of the Transition Agreement, meaning the financial and operational terms are determined solely by the two franchisees. However, the Expense Reduction Analysts franchisor requires a copy of the fully-executed Transition Agreement for their records, but assumes no liability related to the agreement. The Assigned Franchisee is then responsible for performing the obligations under the Assignable Client Contract Set and paying the Phase-Out Consideration to the original franchisee, as agreed upon in the Transition Agreement.