Expense Reduction Analysts
Expense Reduction Analysts, Inc.
Company Information
16415 Addison Road Addison Tower, Suite 410Addison, Texas 75001
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.
We have been offering the franchises for the right to own and operate Consulting Businesses since November 2002. In November 2002, we also commenced offering qualified individual franchises for the right to serve as an independent area representative (an “Area Representative Franchise”). Up until this year we previously referred to Area Representatives as “Area Developers.” We currently intend and expect to continue offering and selling Area Representative Franchises in the future under a separate form of disclosure document. The owner of an Area Representative Franchise will, at times, be referred to as an “Area Representative” in this Disclosure Document. Area Representatives may, but need not, invite Regional Franchisees to work with them on projects and act as a resource for the Regional Franchisees. As of December 31, 2018, we have 15 Area Representative Franchises and 130 Regional Franchises. A list of Area Representatives is included in Exhibit D. We have operated a business that is similar to the Area Representative Franchise that we offer since November 2002. We have also operated a Consulting Business since our incorporation in September 2002. We have no other businesses.
2 Directors with Prior Bankruptcies
4 Ongoing Lawsuits
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Franchise Rating
Franchimp Summary Rating
7/10
Earning Transparency
7/10
Investment Accessibility
6/10
Summary of potential earnings
$128,938 / unit
Average Revenue During 2021Business-Related
Franchise System Development
| Year | Units at Start of Year | Units Opened | Units Terminated | Non-Renewals | Re-Acquired by Franchisor | Ceased Operations | Units at End of Year |
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Distribution of Expense Reduction Analysts Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $59,900 Maximum: $64,900
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $71,000 Maximum: $95,900
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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