Under what condition may an Expense Reduction Analysts franchisee solicit business from ERAC Accounts?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not solicit business from ERAC Accounts unless You do so under the direction of the Franchisor and according to its terms of engagement. Any ERAC Account must be directed to ERAC, at which point ERAC will have the same rights and discretion to administer such ERAC Accounts as those described in Section 2.1(b) of this Agreement in reference Franchisor and ERA Threshold Accounts.
In the event You unknowingly solicit or commence working with any ERA-Threshold Account or ERAC Account, You must immediately notify the Franchisor at the point You know, or reasonably should know, that the Client or Prospective Client at issue meets the criteria as either an ERA Threshold Account or ERAC Account. Your failure to comply with these directives regarding ERA Threshold Accounts and ERAC Accounts will constitute a material violation of Your Franchise Agreement
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, a franchisee may only solicit business from ERAC Accounts under specific conditions. ERAC Accounts are defined as clients or prospective clients meeting criteria specified in the manuals or in writing from Expense Reduction Analysts. ERAC itself, or Expense Reduction Analysts Consulting, is a California corporation and a related party of the franchisor that provides expense reduction consulting services to clients with annual revenues of at least $1,000,000,000.00.
Specifically, an Expense Reduction Analysts franchisee may not solicit business from ERAC Accounts unless they do so under the direction of Expense Reduction Analysts and according to its terms of engagement. Any ERAC Account must be directed to ERAC. ERAC will then have the same rights and discretion to administer such ERAC Accounts as Expense Reduction Analysts does for ERA Threshold Accounts.
This means that franchisees cannot independently pursue ERAC Accounts. Instead, they must follow Expense Reduction Analysts' instructions if they are permitted to engage with these high-revenue clients at all. This restriction is significant because ERAC Accounts, by definition, represent very large potential clients.
Failure to comply with these directives regarding ERA Threshold Accounts and ERAC Accounts will constitute a material violation of the Franchise Agreement. If a franchisee unknowingly solicits or commences working with any ERA-Threshold Account or ERAC Account, the franchisee must immediately notify Expense Reduction Analysts at the point they know, or reasonably should know, that the Client or Prospective Client at issue meets the criteria as either an ERA Threshold Account or ERAC Account.