How is the 'Median Net Cumulative Receipts' calculated for Expense Reduction Analysts franchisees?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the 'Median Net Cumulative Receipts' is calculated by ordering all Net Cumulative Receipts figures from the franchisees being counted, from the lowest to the highest value, and then identifying the middle figure in that ordered list. If there is an even number of franchisees, the median is determined by averaging the two middle figures.

For a prospective Expense Reduction Analysts franchisee, understanding how the median is calculated is crucial for interpreting the financial performance data presented in Item 19 of the FDD. The median provides a measure of the 'typical' performance, which can be more representative than the average, as it is less influenced by extremely high or low values.

It is important to note that the Net Cumulative Receipts figures used in this calculation represent Gross Revenue less any fees paid in connection with Joint Venture Agreements with other franchisees. This means that the median reflects the actual revenue retained by the franchisees after these specific deductions. The FDD provides separate tables for full-time and part-time franchisees, so the median is calculated separately for each group, giving a more accurate picture of performance based on the franchisee's level of involvement.

Prospective franchisees should carefully review the financial performance representations in Item 19, paying close attention to both the average and median Net Cumulative Receipts, as well as the range of values, to gain a comprehensive understanding of the potential financial outcomes of operating an Expense Reduction Analysts franchise.