How does participation in the ISMP affect the Minimum Royalty Fees for an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
vance written notice. Any suspension of the Minimum Royalty Fee as described in this Section will be subject to the Franchisor's periodic review and receipt by the Franchisor of Your circumstances, which You must support with appropriate documentation, and does not waive Franchisor's right to demand exact compliance with any of the terms herein.
- (4) You may elect to participate in the ISMP during the Start-Up Phase, which begins on Your Commencement Date and shall continue for up to eighteen (18) months. If You participate in the ISMP, You will invest in an individual marketing program for Your ERA Business approved by the Franchisor.
- (a) If You elect to participate in the ISMP, You must:
- (i) complete an ISMP Marketing and Activity Plan that is reviewed and approved by the Franchisor;
- (ii) actively participate in a formal monthly review of the approved ISMP Marketing and Activity Plan; and
- (iii) on a monthly basis, achieve the activities required in the ISMP Marketing and Activity Plan.
- (b) If you participate in the ISMP and comply with its terms, Franchisor shall deduct the amount of ISMP funds spent by you each month during the ISMP from your obligations to pay Minimum Royalty Fees for the current month. The maximum credit applied shall not be more than an amount equal to $500 deducted from your monthly Minimum Royalty Fee for the current month.
- (c) You agree and acknowledge that the Franchisor's review and approval of Your ISMP Marketing and Activity Plan does not constitute a representation, w
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, franchisees can participate in the Initial Special Marketing Program (ISMP) during their Start-Up Phase, which lasts up to 18 months from the Commencement Date. If a franchisee chooses to participate in the ISMP, they must invest in a marketing program for their Expense Reduction Analysts business that has been approved by the franchisor.
To participate in the ISMP, the franchisee must complete an ISMP Marketing and Activity Plan that is reviewed and approved by Expense Reduction Analysts, actively participate in monthly reviews of the plan, and achieve the activities outlined in the plan on a monthly basis.
If the Expense Reduction Analysts franchisee participates in the ISMP and complies with its terms, the franchisor will deduct the amount of ISMP funds spent by the franchisee each month from their Minimum Royalty Fees for that month. However, the maximum credit that can be applied is $500 per month.
It is important to note that Expense Reduction Analysts' review and approval of the ISMP Marketing and Activity Plan does not guarantee any level of success or profit for the franchisee's business. The franchisee's ability to achieve the required activities in the plan will largely depend on their own skills and efforts as an independent businessperson.