Expense Reduction Analysts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$76,000 - $105,900
Franchise Fee
$64,900
Total US Locations
163
Business Summary
ERA Group operates a consulting business that specializes in cost optimization and supplier management, aiming to find extra profit for private and public company clients. The primary services involve prospecting and acquiring clients, analyzing clients' purchased services to identify cost-saving opportunities, and providing various saving options directly, with other ERA Group franchisees, or with approved third-parties. Clients benefit from cost reductions, and ERA Group franchisees earn a percentage of the documented savings identified for these clients.
Corporate History
Expense Reduction Analysts, Inc. was incorporated in California in September 2002. Shortly after its formation, in November 2002, the company began offering franchises for its Consulting Businesses. The company initially also offered Area Representative Franchises, but no longer intends to sell them. Expense Reduction Analysts, Inc. is part of the broader ERA Group, whose ultimate parent company, Montgomery Investment Co SA, based in Luxembourg, acquired certain assets of Expense Reduction Analysts International, Ltd. in 2011. The company primarily operates its core consulting business and manages certain client accounts, while its affiliate, ERAC, handles larger client accounts. Several international affiliates also offer franchises globally under the ERA Group brand.
Financial Overview
Investment Range
$76,000 - $105,900
Franchise Fee (Low)
$64,900
Franchise Fee (High)
$69,900
Royalty %
15%
Marketing %
3%
Equipment Costs (High)
$6,000
Working Capital
$4,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Expense Reduction Analysts, Inc. appears to be in a healthy financial position, demonstrating consistent net income and positive cash flow for the years ended December 31, 2024, and 2023. The company maintains a strong cash and cash equivalents balance and has substantial retained earnings, indicating profitability. The auditors have not identified any conditions or events that raise substantial doubt about the company's ability to continue as a going concern.
Financing Details
Expense Reduction Analysts, Inc. does not offer any direct or indirect financing to its franchisees and does not guarantee any of their notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
163
Franchised Units
161
Corporate Units
2
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Expense Reduction Analysts, Inc. has disclosed one past litigation matter involving its international affiliate, E R Associates (Switzerland) Ltd, and a former Area Developer in Switzerland. This civil action, commenced in September 2016 and settled in January 2017, stemmed from the termination of an Area Development Agreement, with both parties alleging grounds for damages. The matter was resolved through a confidential settlement. Expense Reduction Analysts, Inc. itself was not a named defendant in this case, and no other litigation is required to be disclosed by the company.
Bankruptcy History
Expense Reduction Analysts, Inc. has no bankruptcy information that is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise agreement, Expense Reduction Analysts, Inc. franchisees must provide written notice between three and six months before their current term expires. They must be in good standing, meaning they have no breaches of any agreements and have fulfilled all their obligations. Franchisees are required to pay all outstanding amounts and the specified Renewal Fee. They will also need to sign the then-current form of the franchise agreement, which may contain different terms, and both the franchisee and any guarantors must execute a general release. Additionally, they must complete any training or assessments deemed necessary by Expense Reduction Analysts, Inc..
Training & Support Program
Franchisor Assistance
Expense Reduction Analysts, Inc. provides comprehensive assistance starting with initial training on how to plan and operate the System. Franchisees receive rights to use the brand's trademarks and system, along with access to confidential operating manuals. Although it assumes a home-based office, the franchisor offers ongoing consultation and advice through telephone, facsimile, online portals, and intranet. It also provides support services for managing client receivables and payments via a database, may recommend pricing structures, and requires the use of standardized contract templates. Proprietary software is licensed for administrative services. For specific issues, additional assistance can be provided at the franchisee's request, potentially incurring a fee. Training for additional personnel or remedial training may also be offered or required, with associated costs.
Initial Training Hours
95
Training Location
Hybrid (online pre-learning and in-person at ERA Academy in Kent, England, or other designated locations)
Ongoing Support
Expense Reduction Analysts, Inc. provides continuous consultation and advice to its franchisees via telephone, fax, online portals, and intranet communication. The company also offers support services for operating its system, including recording client receivables and payments in a database. Franchisees may be required to attend an annual conference, for which the registration fee for one person is covered for new franchisees in their first 12 months, and at least 75% of regional meetings annually. Additional and remedial training programs may also be offered or required, with associated costs for the franchisee.
Franchise Requirements
Ideal Candidate Profile
ERA Group seeks skilled professionals with considerable business experience and the necessary capital, resources, and business skills to successfully operate a cost optimization and supplier management consulting business. Ideal candidates should demonstrate a willingness to maintain high activity levels for business development and adhere to the company's system standards.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
ERA Group franchisees operate a consulting business within a designated market area, referred to as an Area or Region, which ERA Group defines in the Franchise Agreement. These areas are not fixed in size but can vary based on the demographics of the surrounding area, particularly the number of potential eligible clients located within that general vicinity. ERA Group franchisees do not receive an exclusive territory and may encounter competition from other franchisees, company-owned outlets, or other distribution channels. The maximum number of franchisees ERA Group establishes within an area depends on the number of prospect businesses that meet the criteria to be eligible clients in that area. To avoid conflicts, franchisees must pre-designate any prospective clients they wish to solicit by identifying them in ERA Group's proprietary software on a first-come, first-serve basis.
Staffing Notes
Expense Reduction Analysts, Inc. assumes franchisees will initially operate from a home office without hiring employees. However, franchisees may employ or engage Practice Model Consultants (PMCs) or other employees, provided PMCs are approved by Expense Reduction Analysts, Inc. and successfully complete the Foundational Training Program. All employees and independent contractors must sign a non-disclosure and non-competition agreement and adhere to Expense Reduction Analysts, Inc.'s system standards, manuals, and professional conduct code. Franchisees are solely responsible for all actions of their employees and subcontractors, including maintaining good client relations and ensuring compliance with the franchise agreement.