factual

What happens to unexpended Marketing Fund Contributions for Expense Reduction Analysts?

Expense_Reduction_Analysts Franchise · 2025 FDD

Answer from 2025 FDD Document

Any unexpended Marketing Fund Contributions will be retained for use in connection with the Marketing Fund during the following year. We do not use Marketing Fund contributions to pay for advertising that solicits the sale of franchises.

During our fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds, with 37% of the funds available for future programs. Spending for 2024 was as follows: 41.15% of its funds on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–36)

What This Means (2025 FDD)

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, any unexpended Marketing Fund contributions will be retained for use in connection with the Marketing Fund during the following year. Expense Reduction Analysts does not use Marketing Fund contributions to pay for advertising that solicits the sale of franchises.

For the fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds, leaving 37% available for future programs. The spending for 2024 was allocated as follows: 41.15% on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs.

This means that if an Expense Reduction Analysts franchisee contributes to the Marketing Fund, any portion of those contributions not spent in the current year will be carried over and used for marketing purposes in the subsequent year. The franchisee can request a basic accounting of the Marketing Fund from the prior year in writing within 120 days after the fiscal year end. The franchisor retains control over how the marketing funds are spent, with the advice of the Franchise & Marketing Advisory Council, but is not obligated to follow that advice.

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.