When do Minimum Royalty Fees accrue for an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 11), and any other amount you owe us.
Minimum Royalty Fees accrue on the first day of every month. Each month, or in any other frequency in our sole discretion, we may calculate your Net Cumulative Receipts YTD in order to
determine whether you must pay the 15% of Net Cumulative Receipts, or the Minimum Royalty Fee, for the immediately preceding calendar month. We may withhold payments of your share if you fail to complete and submit reports required under the Franchise Agreement or as we may otherwise specify in the Manuals or otherwise in writing to you.
On the first business day of every month, or on any other day that we elect, we will deliver to you a courtesy notice of intent to debit all Minimum Royalty Fees currently due. We will withdraw the Minimum Royalty Fees currently due from your bank account seven (7) days after delivery of the Intent to Debit Notice.
D. Initial Special Marketing Program
As discussed in more detail in Item 11, you may elect to participate in the Initial Special Marketing Program ("ISMP") during the first eighteen (18) months after the Commencement Date of the Franchise Agreement. If you participate in the ISMP and comply with its terms, we will deduct the amount of ISMP funds spent by you each month during the ISMP from your obligations to pay Minimum Royalty Feesfor the current month. The maximum credit applied shall not be more than an amount equal to $500 deducted from your monthl
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, Minimum Royalty Fees accrue on the first day of every month. Expense Reduction Analysts may calculate the franchisee's Net Cumulative Receipts year-to-date (YTD) to determine whether the franchisee must pay 15% of Net Cumulative Receipts or the Minimum Royalty Fee for the preceding calendar month. Expense Reduction Analysts may withhold payments of the franchisee's share if the franchisee fails to submit required reports.
Expense Reduction Analysts will deliver a courtesy notice of intent to debit all Minimum Royalty Fees currently due on the first business day of every month, or on any other day that they elect. The Minimum Royalty Fees will be withdrawn from the franchisee's bank account seven days after the delivery of this notice.
Notably, if a franchisee participates in the Initial Special Marketing Program (ISMP) during the first 18 months after the franchise agreement's commencement date and complies with its terms, Expense Reduction Analysts will deduct the amount of ISMP funds spent each month from the franchisee's Minimum Royalty Fees for the current month. However, the maximum credit applied cannot exceed $500 per month.