Prior to opening, what account details must a franchisee provide to Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Royalty Fee, as well as any other fees payable to us or our affiliates under the Franchise Agreement, may be collected by us via EFT from the bank account you are required to designate solely for use in connection with your Consulting Business (your "EFT Account"). You must provide us with the details of your EFT Account prior to opening and execute all documents necessary to authorize us to make withdrawals from this account throughout the term of your Franchise Agreement, including our then-current EFT Withdrawal Authorization form that is be attached as an Exhibit to your Franchise Agreement. You must provide us with advance written notice of any change to the information related to your EFT Account. Upon our written request, you must make all such payments described in this Item by bank or certified check. Your checking account must maintain a balance at least as great as your Minimum Royalty Fees.
Source: Item 6 — OTHER FEES (FDD pages 13–19)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, franchisees must provide details of their designated Electronic Funds Transfer (EFT) account before opening their consulting business. This EFT Account is specifically for transactions related to the Expense Reduction Analysts business. Franchisees must also complete the necessary paperwork to authorize Expense Reduction Analysts to make withdrawals from this account throughout the term of the Franchise Agreement.
This requirement ensures that Expense Reduction Analysts can collect Royalty Fees and any other fees payable under the Franchise Agreement via EFT. Franchisees are obligated to give advance written notice of any changes to the EFT Account information. While EFT is the standard method, Expense Reduction Analysts retains the right to request payments via bank or certified check.
Furthermore, the franchisee's checking account must maintain a balance at least as great as the Minimum Royalty Fees. This stipulation protects Expense Reduction Analysts by ensuring funds are available to cover the minimum royalty obligations. For a prospective franchisee, this means setting up a dedicated bank account and maintaining sufficient funds to meet the minimum royalty requirements, as well as keeping Expense Reduction Analysts informed of any changes to the account details.