factual

Is the Expense Reduction Analysts Franchisor obligated to arrange for a Centralized Billing Service?

Expense_Reduction_Analysts Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (2) The Franchisor is not obliged to arrange for a Centralized Billing Service but may at its discretion.
  • (1) The Franchisor may, from time to time (although is not obligated to), provide such other services and support as it may reasonably determine, including, but not limited to:
  • (a) Centralized Billing Services in accordance with Section 6. If provided, this service is free of charge

Source: Item 23 — RECEIPTS (FDD pages 58–215)

What This Means (2025 FDD)

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the franchisor is not obligated to arrange for a Centralized Billing Service. However, Expense Reduction Analysts may choose to do so at its discretion. If a Centralized Billing Service is in place, franchisees are generally required to use it, unless Expense Reduction Analysts specifies otherwise in writing. This service is provided to the franchisee free of charge.

If Expense Reduction Analysts adopts the Centralized Billing Service, all client payments for the franchisee's services must be directly transferred to a bank account associated with the Centralized Billing Service. Then, on the 10th day of each calendar month (or the next business day if the 10th falls on a weekend), the Centralized Billing Service will pay the franchisee. The payment will be the amount calculated by deducting the Royalty Fee and the Marketing Fund Contribution from the payments received from the franchisee's clients. Any amounts due to Joint Venture partner(s) and entered in the relative project form on the ERA Management Information System (i.e. ERA EMS/Dynamics) will also be deducted. The Royalty Fee will be offset against the franchisee's Minimum Royalty Fee, with the reconciliation period being the Year.

Expense Reduction Analysts will issue a Client Revenue Report on or before the Payment Date of each month for the preceding month. This report will detail the Net Cumulative Receipts received and any amounts deducted by Expense Reduction Analysts. To facilitate this report, franchisees must provide Expense Reduction Analysts with any reasonably required information.

Expense Reduction Analysts may also provide other services and support from time to time, though they are not obligated to. These services may include Centralized Billing Services, which, if provided, are free of charge, as well as general management and administrative services. Expense Reduction Analysts reserves the right to charge a fee for these additional services based on their standard hourly rates under specific circumstances, such as when the services are requested by the franchisee, are part of a curative action for a default, or are provided within the franchisee's Area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.