What is the minimum Assignment Fee for an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) You give to the Franchisor all details of the proposed assignment including a copy of the contract for the sale of the ERA Business and any other agreements between You and the assignee;
- (2) You establish, to the Franchisor's reasonable satisfaction, that the proposed assignee:
- (a) is a reputable and responsible person, having the financial resources and business experience and capabilities necessary to operate the Business successfully; and
- (b) is not, or could not be reasonably regarded as, a market competitor of the Franchisor or of the ERA Network;
- (3) You pay to the Franchisor the Assignment Fee and all money which is payable under this Agreement up to the date of the assignment; the payment of the aforesaid amount must be made by credit transfer to the bank account specified by the Franchisor;
- (4) You comply with the Franchisor's Business transfer requirements and procedures;
- (5) At the option of the Franchisor, the assignee executes a franchise agreement in the form then used by the Franchisor for ERA Businesses, or a deed of assignment of this Agreement in a form required by the Franchisor;
- (6) The assignee executes any other documents then customarily used by the Franchisor for ERA Businesses;
- (7) The assignee successfully completes at his cost the Franchisor's Foundational Training Program for new ERA Businesses and pays the costs of the other services, including coaching, normally provided to new ERA consultants (see Training Fee under Section 12 in the Data Sheet);
- (8) In the event that You request the Franchisor to sell Your Business, or that You sell Your Business to a candidate introduced to You by the Franchisor or by a party delegated by the Franchisor, a sales commission equivalent to 30% of the Initial Fee specified in Section 7 of the Data Sheet will be payable to the Franchisor, in addition to the Training Fee described in (7) above; and
- (9) You shall also be solely responsible for any third-party broker fees in connection with the assignment of Your Business.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, if a franchisee wishes to assign their franchise to a new owner, they must first obtain the franchisor's consent. As part of this process, the franchisee is required to pay Expense Reduction Analysts an Assignment Fee.
The FDD states that the franchisee must pay the Assignment Fee and all other outstanding monies owed to Expense Reduction Analysts up to the date of the assignment. The payment must be made via credit transfer to a bank account specified by Expense Reduction Analysts. The FDD excerpt does not specify the exact dollar amount of the assignment fee.
In addition to paying the Assignment Fee, the franchisee must also provide Expense Reduction Analysts with all details of the proposed assignment, including a copy of the sale contract and any other agreements with the assignee. The franchisor must also be reasonably satisfied that the proposed assignee is reputable, financially stable, and not a market competitor. The assignee will also need to complete the Expense Reduction Analysts' Foundational Training Program for new ERA Businesses at their own cost and pay for other services like coaching that are normally provided to new ERA consultants.
Prospective franchisees should inquire with Expense Reduction Analysts about the specific amount of the Assignment Fee, as it is not explicitly stated in this excerpt of the FDD. Understanding the full costs associated with assigning the franchise is crucial for financial planning and decision-making.