What is the reconciliation period for the Minimum Royalty Fee for Expense Reduction Analysts franchisees?

According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the reconciliation period for the Minimum Royalty Fee is the Year. This means that Expense Reduction Analysts will review the franchisee's cumulative receipts annually to determine if the franchisee has met the minimum royalty obligations.

Specifically, Expense Reduction Analysts franchisees must pay a royalty fee that is the greater of 15% of Net Cumulative Receipts for the immediately preceding calendar month or a specified Minimum Royalty Fee. The Minimum Royalty Fee is $1,024.00 per month for the first thirty-six (36) months after the Commencement Date, and $1,280.00 per month thereafter.

The reconciliation process ensures that Expense Reduction Analysts franchisees are paying the appropriate royalty fees based on their revenue. If a franchisee's cumulative receipts for the year are high enough, they will pay 15% of their monthly receipts. If their receipts are lower, they will pay the Minimum Royalty Fee. This reconciliation is done on a yearly basis.