Under what conditions might the Minimum Royalty Fee for an Expense Reduction Analysts franchise be suspended?
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 franchisor has the sole discretion to suspend the Minimum Royalty Fee under specific circumstances. This may occur if a franchisee is unable to operate their Expense Reduction Analysts business due to reasons beyond their control.
To be considered for a suspension of the Minimum Royalty Fee, the franchisee must provide Expense Reduction Analysts with at least thirty days' advance written notice. The franchisor will then periodically review the franchisee's circumstances, requiring 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 strict compliance with all terms of the franchise agreement. This means that even if a suspension is granted, the franchisee must still adhere to all other obligations outlined in the agreement. This clause protects Expense Reduction Analysts and ensures franchisees do not take advantage of the suspension policy.