What does the 'Net Cumulative Receipts Range' represent for Expense Reduction Analysts franchisees in each decile?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
erage | |---|---|---|---|---|---|---| | 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's 2025 Franchise Disclosure Document, the 'Net Cumulative Receipts Range' represents the high and low-end values of net cumulative receipts for franchisees, ranked by decile. Net Cumulative Receipts is defined as Gross Revenue less any fees paid in connection with a Joint Venture Agreement with another Consulting Business franchisee. The deciles divide the franchisees into ten equal groups based on their performance, with the 1st decile representing the top 10% of franchisees and the 10th decile representing the bottom 10%.
For a prospective Expense Reduction Analysts franchisee, this means the Item 19 data provides a range of earnings achieved by existing franchisees in 2024, segmented by performance level. For example, the 1st decile of full-time franchisees had a Net Cumulative Receipts Range between $704,970 and $2,273,863. The 10th decile of full-time franchisees had a Net Cumulative Receipts Range between $35,818 and $90,949. This allows potential franchisees to see the potential revenue based on the performance of current franchisees.
It is important to note that these figures are based on historical data from January 1, 2024, to December 31, 2024, and only include franchisees who had completed the 18-month start-up phase using the elected Initial Special Marketing Program prior to the beginning of the 2023 fiscal year. The data is separated into full-time and part-time franchisees. Expense Reduction Analysts does not track the number of hours franchisees work, but determines full-time status through interactions with their systems and staff.
As with all financial performance representations, Expense Reduction Analysts notes that individual results may differ, and there is no assurance that a new franchisee will earn as much as existing franchisees. Prospective franchisees should carefully review these figures, consider their own circumstances and capabilities, and conduct thorough due diligence before investing in an Expense Reduction Analysts franchise. They should also request written substantiation of the data and report any unauthorized financial performance information to the franchisor and regulatory agencies.