Who is responsible for negotiating and entering into a Transition Agreement with an Assigned Franchisee for Expense Reduction Analysts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Once Franchisor has provided you with the details above, You will be solely responsible for negotiating and entering into a form of Transition Agreement for each Assignable Client and corresponding Assignable Client Contract Set with an Assigned Franchisee that Franchisor did not object to under Section 26.3(2) above. Upon the signing of any Transition Agreement, you must promptly provide a fully-executed copy of that Transition Agreement to the Franchisor for its records only.
- (4) If a given Assignable Client is assigned to an authorized Assigned Franchisee prior to the expiration of this Agreement, then that Assigned Franchisee will be solely responsible for: (i) performing Your obligations under the Assignable Client Contract Set; and (ii) paying You the Phase-Out Consideration that the Assigned Franchisee agreed You are due under the Transition Agreement for that Assignable Client. The Franchisor will not have any obligation or liability in connection with any Transition Agreement You choose to execute.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts Franchise Disclosure Document, the franchisee is solely responsible for negotiating and entering into a Transition Agreement with an Assigned Franchisee for each Assignable Client and corresponding Assignable Client Contract Set. This occurs when the franchisor does not object to the franchisee's proposed Assigned Franchisee.
This means that as an Expense Reduction Analysts franchisee nears the end of their agreement, they are responsible for finding another franchisee to take over their client contracts. The franchisee must negotiate the terms of the Transition Agreement, including the Phase-Out Consideration, which is the payment the Assigned Franchisee will make to the outgoing franchisee.
Expense Reduction Analysts will not be involved in the negotiation or be liable for the terms of the Transition Agreement. The franchisee must provide a copy of the fully-executed Transition Agreement to Expense Reduction Analysts for their records. This places the onus on the franchisee to ensure they secure a favorable agreement when transitioning clients to another franchisee.