Who is responsible for third-party broker fees in connection with the assignment of an Expense Reduction Analysts franchise?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) You shall also be solely responsible for any third-party broker fees in connection with the assignment of Your Business.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the franchisee is solely responsible for any third-party broker fees associated with the assignment of their franchise business. This means that if a franchisee decides to sell their Expense Reduction Analysts franchise and uses a broker to facilitate the sale, they must cover the broker's fees.
This allocation of responsibility is fairly standard in franchising. Typically, the seller (in this case, the franchisee) is the one who engages the broker and benefits directly from their services in finding a buyer and negotiating the sale. Therefore, it is logical that the seller would bear the cost of those services.
For a prospective Expense Reduction Analysts franchisee, this means that when planning for a potential future sale of their franchise, they should factor in the cost of broker fees if they choose to use a broker. These fees can vary but are often a percentage of the total sale price, so it's important to understand the potential expense. The FDD specifies that the franchisee is 'solely responsible,' indicating that Expense Reduction Analysts will not contribute to or reimburse these fees.