What is the Start-Up Phase duration for an Expense Reduction Analysts franchise if participating in the ISMP?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
vance written notice. Any suspension of the Minimum Royalty Fee as described in this Section will be subject to the Franchisor's periodic review and receipt by the Franchisor of Your circumstances, which You must support with appropriate documentation, and does not waive Franchisor's right to demand exact compliance with any of the terms herein.
- (4) You may elect to participate in the ISMP during the Start-Up Phase, which begins on Your Commencement Date and shall continue for up to eighteen (18) months. If You participate in the ISMP, You will invest in an individual marketing program for Your ERA Business approved by the Franchisor.
- (a) If You elect to participate in the ISMP, You must:
- (i) complete an ISMP Marketing and Activity Plan that is reviewed and approved by the Franchisor;
- (ii) actively participate in a formal monthly review of the approved ISMP Marketing and Activity Plan; and
- (iii) on a monthly basis, achieve the activities required in the ISMP Marketing and Activity Plan.
- (b) If you participate in the ISMP and comply with its terms, Franchisor shall deduct the amount of ISMP funds spent by you each month during the ISMP from your obligations to pay Minimum Royalty Fees for the current month. The maximum credit applied shall not be more than an amount equal to $500 deducted from your monthly Minimum Royalty Fee for the current month.
- (c) You agree and acknowledge that the Franchisor's review and approval of Your ISMP Marketing and Activity Plan does not constitute a representation, w
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, franchisees may participate in the Initial Special Marketing Program (ISMP) during their Start-Up Phase. The Start-Up Phase begins on the franchisee's Commencement Date and continues for up to 18 months.
If a franchisee chooses to participate in the ISMP, they must invest in a marketing program for their Expense Reduction Analysts business that has been approved by the Franchisor. The franchisee must also complete an ISMP Marketing and Activity Plan that is reviewed and approved by Expense Reduction Analysts, actively participate in a formal monthly review of the approved plan, and achieve the activities required in the plan on a monthly basis.
Franchisees who participate in the ISMP and comply with its terms may receive a credit towards their Minimum Royalty Fees. Expense Reduction Analysts will deduct the amount of ISMP funds spent each month from the franchisee's obligation to pay Minimum Royalty Fees, with a maximum credit of $500 per month. However, the FDD clarifies that Expense Reduction Analysts's approval of the ISMP Marketing and Activity Plan does not guarantee any level of success or profit for the franchisee's business.