Does Expense Reduction Analysts have any restrictions on assigning their contract?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| j. Assignment of contract by | 25 | No restrictions on our right to assign. | |
| franchisor | |||
| k. “Transfer” by franchisee - | 26 | Includes transfer of agreement or sale of assets | |
| defined | or ownership change | ||
| l. Franchisor approval of | 26.1 and 26.4 | We have the right to approve all transfers but | |
| transfer by franchisee | will not unreasonably withhold approval | ||
| m. Conditions for franchisor approval of transfer | 26.3 and Exhibit 1 – Section 13 | Notice, new franchisee qualifies, Assignment and training fee paid, defaults cured, purchase agreement approved, training completed, mutual release and guarantee signed, and new franchisee signs our then-current form of franchise agreement that may contain terms and conditions materially different from those in your franchise agreement. | |
| n. Franchisor’s right of first refusal to acquire franchisee’s business | 26.2 | We have the right to match any offer to buy your business | |
| p. Death or disability of franchisee | 26.6 | Heirs must qualify within 60 days or have 6 months to sell – potential assignment of interim client manager. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 43–46)
What This Means (2025 FDD)
According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, Expense Reduction Analysts, as the franchisor, faces no restrictions on assigning their contract. However, if a franchisee seeks to transfer their interest in the franchise agreement, it is defined as a "transfer" which includes the transfer of the agreement, sale of assets, or a change in ownership. Expense Reduction Analysts retains the right to approve all franchisee transfers, but states that approval will not be unreasonably withheld.
To gain approval for a transfer, a prospective Expense Reduction Analysts franchisee must meet certain conditions. These include providing notice to Expense Reduction Analysts, ensuring the new franchisee meets the brand's qualifications, paying assignment and training fees, curing any existing defaults, securing approval of the purchase agreement, completing training, signing mutual releases and guarantees, and ensuring the new franchisee signs the then-current form of the franchise agreement. This new agreement may contain terms and conditions that differ materially from the original franchisee's agreement.
Additionally, Expense Reduction Analysts holds the right of first refusal to acquire the franchisee's business, meaning they have the option to match any offer made by a third party to buy the franchise. In the event of the death or disability of a franchisee, their heirs must qualify within 60 days or sell the franchise within 6 months. There is also the potential assignment of an interim client manager during this period.