7/10

Franchimp Summary Rating

6 /10
Lower than 48% of peers

Franchise Summary

Description
As a Regional Franchisee, you will operate aconsulting business ("Consulting Business") specialized in cost optimization and supplier management that finds extra profit for private and public company clients. The primary services of your Consulting Business will include: (i) prospecting and acquiring clients; (ii) analyze clients’ purchased services, identify measurable opportunities to optimize such costs, and provide saving options to thoseclients directly, with other Expense Reduction Analysts franchisees, and/or with third-partiesapproved by the Franchisor; and (iii) retain clients. Clientsbenefit by saving money through reducing its costs, and you benefit by receiving a percentage of the documented savings identified for thoseclients
Company Background
Expense Reduction is the only company in the world to offer a consulting business that specializes in cost optimization and supplier management. The primary services of Expense Reduction are prospecting, acquiring clients, analyzing their purchased services, identifying measurable opportunities for optimizing such costs, and providing saving options to those clients directly with other franchisees or third-parties approved by the franchisor. In this way we deliver our value proposition: "Save Money - So You Can Live Better." We make it easy for every customer to get more from less without compromising quality or service levels.
Franchise Opportunity
The cost of doing business is rising. This means that you need to find ways to cut costs and save money in your company. You know this, but it's hard to make the time or budget for these kinds of projects. That's where Expense Reduction Analysts can help! We will work with you directly, as well as other franchisees and third parties approved by our parent company (Expense Reduction Experts) to provide solutions that will improve your bottom line immediately. Our team of experienced consultants have helped hundreds companies across a wide range of industries find savings on their expenses through outsourcing, renegotiating contracts, or finding more efficient processes within their own businesses. We are experts at identifying opportunities for saving money in any organization we work with and helping them implement those changes quickly so they see results fast!
Corporate Structure
Expense Reduction Analysts, Inc. was incorporated in California on September 12, 2002. Their parent company is Montgomery Investment Co SA a Luxembourg corporation with a registered office at 50 Esplanade, L-9227 Diekirch, Luxembourg. They have been offering both Area Developer License franchises and Regional License franchises since November 2002.
Royalties and Marketing Fees

Royalties : 15.0% of revenue

Royalties : 3% of annual Net Cumulative Receipts

Earnings Transparency

7 /10
This Franchise discloses slightly more information about the financial performance of their franchisees compared to other franchises in the same industry

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Business-Related Industry

$128,938 / unit

Franchise Type: Standard

Average Revenue During 2021

$128,938
$24,112
Industry Low
$553,602
Industry High

Franchise Types Available

# Type Investment Fees

Employee Contact Database

# Name Position Phone Number Email Address

Distribution of Expense Reduction Analysts Franchisees

Expense Reduction Analysts Franchise System Development in 2021

FAQ

How much investment do I need to start my own Expense Reduction Analysts business?
Franchisees typically require at least $71 to $95 investment to get their Expense Reduction Analysts business started
What are the initial franchise fees for Expense Reduction Analysts?
Franchisees typically need to pay at least $59 in fees directly to Expense Reduction Analysts in order to earn the right to launch their business
How much money can I make with a Expense Reduction Analysts franchise? What are the average revenues for a typical Expense Reduction Analysts business?
We estimate that the average revenue of an individual Expense Reduction Analysts unit is approximately $128,938. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a Expense Reduction Analysts unit? What is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are also generally 10 years

Accessibility

6 /10
The Franchisor's investment costs ranges from $71,000 to $95,900 which is Much Lower than the $0 to $0 average in the Business-Related industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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