What is the primary purpose of the Expense Reduction Analysts Marketing Fund?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to establish and administer a brand development and marketing fund (the "Marketing Fund"), and we currently administer such a Marketing Fund as of the Issuance Date of this Disclosure Document (Sections 15.2 to 15.4 of the Franchise Agreement). The primary purpose of the Marketing Fund is to produce collateral material and marketing programs. We expect that we will use an advertising agency to prepare the programs, but some of the programs may be prepared in-house or by outside services. We may use the fund to pay for (i) market research, advertising materials, media space and time for a national or regional marketing program, a referral program and public relations activities; (ii) the development of collateral and advertising materials and brochures, internet and web-based downloads; (iii) our reasonable costs and overhead that we may incur in activities reasonably related to the direction and implementation of the Marking Fund; and/or (iv) any other purpose we believe would benefit the System. Currently, there is a Franchise & Marketing Advisory Council ("FMAC"), an advisory council composed of up to five (5) franchisees, to advise us regarding the management of the marketing fund. The members of the FMAC are appointed by ERA Group. We will give preference to marketing fund projects that are system wide in scope, but we may allocate some Marketing Fund money to regional groups of Franchisees or individual Franchisees when we consider it desirable. The advice of the FMAC is not binding on us. We reserve the unqualified right to decide, in our sole discretion, where, when and
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–36)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the primary purpose of the Marketing Fund is to produce collateral material and marketing programs. Expense Reduction Analysts expects to use an advertising agency to prepare these programs, but some programs may be prepared in-house or by outside services.
The Marketing Fund may be used to pay for various activities, including market research, advertising materials, media space and time for national or regional marketing programs, referral programs, and public relations activities. It can also cover the development of collateral and advertising materials, brochures, internet and web-based downloads, and Expense Reduction Analysts' reasonable costs and overhead related to the direction and implementation of the Marketing Fund. The funds can be used for any other purpose that Expense Reduction Analysts believes would benefit the Expense Reduction Analysts system.
A Franchise & Marketing Advisory Council (FMAC), composed of up to five franchisees, advises Expense Reduction Analysts regarding the management of the Marketing Fund. However, Expense Reduction Analysts reserves the right to decide how the marketing fund money will be spent and can change or dissolve the FMAC at any time. Franchisees contribute up to three percent of Net Cumulative Receipts to the Marketing Fund monthly. Expense Reduction Analysts is not required to spend a specific amount of marketing fund money in any franchisee's geographic area.