To whom is the initial franchise fee paid when starting an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
YOUR ESTIMATED INITIAL INVESTMENT1
| TYPE OF EXPENDITURE | AMOUNT | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| Initial Franchise Fee 2 | $69,900 | Single lump sum | Due at signing of the Franchise | ERA Group |
| Initial Training and | $0 - $10,000 | As incurred | Agreement. Before Training |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–21)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the initial franchise fee is paid directly to ERA Group. The standard initial franchise fee is $69,900, which is due upon signing the Franchise Agreement. This fee is typically non-refundable, as is common in the franchise industry. However, Expense Reduction Analysts offers a discount of $5,000 off the initial franchise fee for qualified veterans participating in the VetFran® initiative.
In addition to the initial franchise fee, new Expense Reduction Analysts franchisees should be aware of other initial investment costs. These include expenses for training, computer hardware and software, insurance, professional fees, and additional funds for the first three months of operation. These additional costs range from $76,000 to $105,900.
Prospective franchisees should carefully consider these costs and ensure they have sufficient capital to cover the initial investment. It is advisable to consult with a business advisor to review these figures in light of local conditions and the current economic outlook. While the initial franchise fee is paid directly to ERA Group, other expenses such as travel, meals and accommodations for training are paid to suppliers. Computer hardware and software are paid to suppliers as well. Insurance is paid to a broker and insurer, and professional fees are paid to an attorney and accountant.