Under what conditions might the Minimum Royalty Fee for an Expense Reduction Analysts franchise not be charged?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) In the Franchisor's sole discretion, the Minimum Royalty Fee may not be charged if You are unable to carry on the Business for reasons beyond Your control, provided You provide Franchisor with at least thirty (30) days' advance 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.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the Minimum Royalty Fee may not be charged under specific circumstances, at the Franchisor's discretion. If a franchisee is unable to conduct business due to reasons beyond their control, the Minimum Royalty Fee may be suspended.
To qualify for this suspension, the Expense Reduction Analysts franchisee must provide the Franchisor with at least thirty days' advance written notice. The franchisor will periodically review the franchisee's circumstances and requires appropriate documentation to support the claim.
It's important to note that any suspension of the Minimum Royalty Fee does not waive Expense Reduction Analysts' right to demand compliance with all terms of the franchise agreement. This means that even if the fee is temporarily suspended, the franchisee is still obligated to adhere to all other requirements outlined in the agreement. This provision protects Expense Reduction Analysts and ensures franchisees do not exploit the suspension for other means.