Are there any related party transactions disclosed in the Expense Reduction Analysts financial statements?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
47 | Hassan Choudhury | 470-738 8145 | | ILLINOIS | | | | | Brightstar Consulting Corporation | 1 1 2 2 Johnson Avenue | Martin Leiter | 630-416-7086 | | *Northern IL | N a p e r v i l l e , I L 6 0 5 4 0 | | |
NOTE 1 DESCRIPTION OF BUSINESS OPERATIONS AND ORGANIZATION
Expense Reduction Analysts, Inc. (the Company) was incorporated in California on September 12, 2002, with the purpose of becoming the U.S. Master Licensee of Expense Reduction Analysts International, Ltd. (ERAI), an international consultancy firm that engages in implementing cost reduction strategies for corporations. The Company licenses both Area Development licenses and Regional licenses throughout the United States. The Company is a subsidiary of Evercertain Ltd, which is based in the United Kingdom. On January 25, 2011, the assets of ERAI were acquired by Montgomery Investment Company SA (MIC), which is based in Luxembourg. On January 3, 2020, MICO Holdings LTD (MICO) was created as a 100% subsidiary of MIC. MIC is the ultimate group holding company and MICO is the 100% shareholder of Evercertain Ltd.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Expense Reduction Analysts Global Insurance Consulting, Inc. (ERAGIC) and SDCo, LLC (SDCO), as well as its majority owned subsidiary, Expense Reduction Analysts Consultants, Inc. (ERAC) (the Company owns 94%). All intercompany transactions and balances have been eliminated in consolidation.
ERAGIC is a nontrading subsidiary that provides specialty support to licensees undertaking insurance and risk management pr
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Expense Reduction Analysts FDD, the financial statements include the accounts of the company and its subsidiaries. Note 1 and Note 2 describe the business operations and accounting policies of Expense Reduction Analysts, Inc. Expense Reduction Analysts, Inc. is the U.S. Master Licensee of Expense Reduction Analysts International, Ltd. (ERAI). Expense Reduction Analysts, Inc. is a subsidiary of Evercertain Ltd, which is based in the United Kingdom. The ultimate group holding company and shareholder of Evercertain Ltd is Montgomery Investment Company SA (MIC).
The consolidated financial statements include Expense Reduction Analysts Global Insurance Consulting, Inc. (ERAGIC) and SDCo, LLC (SDCO), as wholly owned subsidiaries, as well as Expense Reduction Analysts Consultants, Inc. (ERAC), as a majority owned subsidiary (Expense Reduction Analysts owns 94%). All intercompany transactions and balances have been eliminated in consolidation. ERAGIC is a nontrading subsidiary that provides specialty support to licensees undertaking insurance and risk management projects. SDCO provides services similar to those offered by the Company's other licensees and ERAC provide a service similar to those offered by the Company's other licensees, but only to companies with annual gross receipts over $1 billion.
While the auditor's report and notes to the financial statements are included, the excerpt does not explicitly detail any specific related party transactions beyond the parent-subsidiary relationships. A prospective franchisee should carefully review the full financial statements and notes within the FDD, and consult with a financial advisor, to fully understand the nature and potential impact of any related party transactions on Expense Reduction Analysts' financial performance and stability.