Does Expense Reduction Analysts separate nonlease components from lease components in their accounting?

According to Expense Reduction Analysts's 2025 Franchise Disclosure Document, the company has elected not to separate nonlease components from lease components in their accounting practices. Instead, Expense Reduction Analysts accounts for each separate lease component and the nonlease component as a single lease component.

For a prospective franchisee, this means that when Expense Reduction Analysts determines the accounting for leases, they combine the lease and non-lease elements into one single lease component. This simplifies the accounting process for Expense Reduction Analysts, as they do not need to allocate payments between the lease and non-lease portions of the agreement.

This approach can affect how lease expenses are recognized and reported in Expense Reduction Analysts's financial statements. While it simplifies accounting, franchisees should understand that this method might present a different financial picture compared to companies that separate these components. It is important for potential franchisees to discuss the implications of this accounting practice with the franchisor or their financial advisor to fully understand its impact.