What does the 'Net Cumulative Receipts Range' represent for Expense Reduction Analysts franchisees?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
|---|---|---|---|---|---| | 59 | $176,572 | $27,903 | $713,714 | 0 | 9 | 15% |
Notes:
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- "Net Cumulative Receipts" means Gross Revenue less any fees that you agree to pay in connection with any Joint Venture Agreement that you enter into with another Consulting Business franchisee to provide Approved Products and Services in connection with a given Client, subject to the terms of your Franchise Agreement. A joint venture agreement is an agreement entered into between a franchisee with another franchisee or third party that delegates certain responsibilities and duties to other people.
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- "Range" refers to the relative performance ranking of the Regional Franchisees. Therefore, the "Top 25%" refers to the top 25% of the franchisee count, ranked by Net Cumulative Receipts, the "Medium Top" range refers to the next 25% of the franchisee count, the "Medium Low" range refers to the next 25% of the franchisee count, and the "Low 25%" range refers to the last 25% of the franchisee count.
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- The "1st Decile" range refers to the top 10% of the franchisee count, ranked by Net Cumulative Receipts, the "2nd Decile" range refers to the next 10% of the franchisee count, and so on.
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- "Net Cumulative Receipts Range" lists the actual high and low-end values of Net Cumulative Receipts in each Decile.
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- An "Active Franchisee" is a Regional Franchisee that was active throughout the entire calendar year from January 1, 2024 to December 31, 2024. To this end, an "Inactive Franchisee" is a franchisee that did not operate the ERA Business for all 12 months during the calendar year of 2024.
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- The financial performance information is separated into two tables: one for Full-Time Franchisees, and one for Part-Time Franchisees. We do not track the number of hours our franchisees work, but we can determine through their interactions with our systems and staff which franchisees are dedicating their full time and attention to the franchised business ("Full-Time Franchisees").
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- The "Average Net Cumulative Receipts" is calculated by adding up all Net Cumulative Receipts figures and dividing by the number of figures counted. The "Median Net Cumulative Receipts" is calculated by placing all Net Cumulative Receipts figures being counted in order of ascending or descending value and finding the middle figure in the list. If there is an even number of figures, the median is calculated by adding the middle two figures and dividing by two.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–52)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the 'Net Cumulative Receipts Range' reflects the high and low-end values of net cumulative receipts within specific performance tiers (deciles) of franchisees. Net Cumulative Receipts are calculated as Gross Revenue less any fees paid in connection with any Joint Venture Agreement that a franchisee enters into with another Consulting Business franchisee to provide Approved Products and Services in connection with a given Client. This metric is used to rank the performance of Expense Reduction Analysts franchisees.
The FDD categorizes franchisees into deciles based on their Net Cumulative Receipts, where the '1st Decile' represents the top 10% of franchisees, the '2nd Decile' the next 10%, and so on. The 'Net Cumulative Receipts Range' then shows the highest and lowest actual Net Cumulative Receipts achieved within each of these deciles. This provides prospective franchisees with an understanding of the potential revenue outcomes based on the performance of existing franchisees.
For a prospective Expense Reduction Analysts franchisee, this information is valuable for understanding the range of financial performance achieved by franchisees at different levels. It allows them to see the potential high and low ends of revenue generation within each performance bracket. However, it's important to note that these figures are based on historical data from January 1, 2024, to December 31, 2024, and past performance is not indicative of future results. The financial performance representation includes data for Regional Franchisees that have been operating a franchise substantially similar to the type offered in this Disclosure Document for at least 18 months and who have completed the 18-month start-up phase using the elected Initial Special Marketing Program (“ISMP”) prior to the beginning of the 2023 fiscal year.
It is important to remember that 'Net Cumulative Receipts' excludes fees paid in connection with Joint Venture Agreements. The FDD also specifies that the financial performance information is separated into two tables: one for Full-Time Franchisees, and one for Part-Time Franchisees. Expense Reduction Analysts determines whether franchisees are dedicating their full time and attention to the franchised business through their interactions with their systems and staff. A prospective franchisee should consider these factors and their own business plan (full-time vs. part-time) when evaluating the potential financial outcomes.