What is included in the definition of 'Gross Revenue' for an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenue" is defined to include all income of any type or nature and from any source that you derive or receive (or received by the Centralized Billing Service, as more fully described in Item 11) directly or indirectly from, through by or on account of the operation of the Consulting Business at any time after the signing of your Franchise Agreement, in whatever form and from whatever source, including but not limited to cash, services, in kind from barter and/or exchange, on credit or otherwise as well as business interruption insurance proceeds, all without deduction for expenses including marketing or legal expenses and taxes. However, the definition of Gross Revenue does not include sales tax that is collected from customers and actually transmitted to the appropriate taxing authorities.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, Gross Revenue is comprehensively defined as all income, irrespective of its type, nature, or source, that a franchisee derives directly or indirectly from the operation of their Consulting Business after signing the Franchise Agreement. This includes income received in various forms such as cash, services, in-kind exchanges (barter), credit, or other means. It also encompasses business interruption insurance proceeds.
Notably, this definition of Gross Revenue for Expense Reduction Analysts does not allow for deductions of any expenses, including marketing, legal costs, or taxes. However, there is one exception: sales tax collected from customers and properly remitted to the appropriate taxing authorities is excluded from Gross Revenue.
For a prospective Expense Reduction Analysts franchisee, this broad definition of Gross Revenue is significant because it forms the basis for calculating royalty fees and other financial obligations to the franchisor. Understanding what constitutes Gross Revenue is crucial for accurate financial reporting and compliance with the Franchise Agreement. Franchisees should be aware that virtually all forms of income related to their Expense Reduction Analysts business are subject to royalty calculations, with the only exception being pass-through sales tax.