In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Expense Reduction Analysts franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an Expense Reduction Analysts franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an Expense Reduction Analysts franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Expense Reduction Analysts outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Expense Reduction Analysts’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average, median, high, and low net cumulative receipts for the top 25%, medium top 25%, medium low 25%, low 25%, and all 96 Expense Reduction Analysts Regional Franchisees operating a total of 141 licenses for the period from January 1, 2020 to December 31, 2020

Section I – Background Information

16 Things You Need to Know About the Expense Reduction Analysts Franchise

Experiences Record-Breaking First Half of the Year in 2021

1.  In early August 2021, Expense Reduction Analysts (ERA) celebrated a record-breaking first half of the year. Including both new client sign-ups and welcoming exciting new projects, the franchise network experienced an influx in demand for its services, giving franchise partners the opportunity to maximize growth potential.

2.  Not only did the network experience a 25 percent increase in client sign-ups when compared with pre-pandemic levels, but when compared to the same period in 2020, that increase was up by a whopping 50 percent. The UK has also been the strongest performer for client sign-ups out of more than 40 countries that ERA is based in for the first half of 2021. Founder Fred Marfleet is thrilled to see this level of growth.

3.  Marfleet said, “It’s always fantastic to hear how our team is doing. However, during these circumstances, the results are much more meaningful. Franchise partners have been doing what they do best and creating a significant impact in businesses across all industries. Especially within the likes of hospitality and the entertainment industries – those who have been affected the worst by the pandemic.”

4.  With specialist experience in cost management, the franchise network has been very agile, increasing their business development activities in line with the need recognized by savvy business owners to ensure redundancies were a last resort. As thousands of businesses now face the challenge of COVID-support loan repayments, ERA has seen a significant upturn in inquiry levels. Franchise partners utilize their in-depth understanding of supplier industries to provide the best solutions, with the knowledge and insight required to make best-in-class purchasing decisions that can help mitigate growing expenses for businesses.

5.  Further demonstrating its commitment to the industry, ERA has been shortlisted in the Procurement Consultancy Project of the Year category at the 2021 CIPS Excellence in Procurement Awards. Designed to showcase and celebrate all the best work and teams within the procurement profession, ERA hoped to scoop the award at the ceremony on September 22nd.

6.  And it’s not just the franchise that is being recognized, with franchise partner Chris Wardle being chosen as a finalist in the Outstanding Achiever of the Year category for the 2021 British Ex-Forces in Business Awards. With a schedule of monthly training programs for new franchise partners joining the world-leading white-collar franchise, ERA was in a prime position to continue its impressive record through 2021 and beyond.

Welcomed 148 New Franchise Partners Across Global Network Since Start of COVID-19 Pandemic

7.  In mid-October 2021, Expense Reduction Analysts (ERA) reported that the company welcomed 148 franchise partners since the start of the pandemic across its global network and so far just in 2021 in the EMEA region, which includes the UK, 30 had completed their foundational training by the time of the announcement.

8.  While all these new franchise partners come from varying backgrounds, they all have one thing in common, the motivation to create a rewarding business through finding solutions for their clients. By accessing the ongoing development opportunities offered by ERA, they are learning that every day can be a school day.

9.  Rikesh Nichani had 18 years of logistics experience before joining ERA. Despite having years of experience as part of another franchise network, he was surprised at how much he learned at foundational training and has continued to learn since then. “I had experience with another franchise before joining ERA, but I found that their training was far more wide-ranging and significantly better,” he said. “I liked the idea that I didn’t have to start from scratch again, and that I could leverage the strength of the network to make an immediate impact.”

10.  Since Nichani has launched his business from his base in West London, he has already managed to secure his first client, with more in the pipeline. “My advice would be to have a strong mindset. You will deal with people who don’t initially understand the benefits of your service. So, use what you learn in training, enjoy explaining what a difference you can make to prospective clients, and invest your time in developing yourself as your business grows,” he advised.

11.  Swedish franchise partner Christian Rodas spent 20 years in the manufacturing sector before making the choice to join ERA in August 2021. Rodas said, “I was in two minds when deciding on what my next step would be. However, after looking at ERA’s established network of franchise partners, I realized that by joining ERA, I would have all the benefits of a well-proven process when growing my business. The remote learning meant I could connect with knowledgeable experts worldwide. As a generalist, I love the idea that I can be involved in all aspects of a business – sales, project management, and analytics. ERA means I have the freedom to do all this by partnering with a worldwide support base of consultants and access to subject-specific development at exactly the time I need it.”

12.  Neil Apter, head of performance development EMEA at ERA, said, “Our Global Academy supports franchise partners across more than 40 different countries who speak well over 20 different languages from our base in the UK. It’s a constantly expanding environment with very different cultures and levels of market maturity and that means we must continually evolve our already world-class franchise support and training to meet their varied needs.”

13.  Apter added, “To do this we offer a huge level of support, from pre-training onboarding to ongoing schemes designed to get their business up and running as quickly as possible, including coaching, mentoring and our Power Assist program. The training takes a blended learning approach, with self-development, group and one-to-one training and specialized local support for each territory. The digital transformation of our training was hastened by the pandemic, but it also allowed us to understand that it is possible to deliver high-quality training content virtually. We’re so proud of the high-quality content which we have developed and tailored. The feedback from our experienced country leadership teams is that they have more enthusiastic, knowledgeable and engaged new starters than ever before – we think our training sessions beat your average school lesson hands down!”

Company History

14.  Expense Reduction Analysts (ERA) was founded in 1992 by Fred Marfleet in London, England. Marfleet had always been interested in finance and business while growing up. After he earned his business degree and qualified as Certified Practising Accountant (CPA), he moved into the finance industry forming a boutique financial services business. As businesses were growing in the early 1990s and looking to streamline their business costs, Marfleet soon identified an opportunity to assist companies leveraging his personal experience in finance and accounting in combination with his passion for working with people.

15.  Marfleet’s business was a success and he began franchising Expense Reduction Analysts in 1997. The first franchises opened in the United Kingdom and Australia. ERA eventually expanded to the United States as well as other countries. Today, there are Expense Reduction Analysts locations in nearly 50 countries around the world.

Entrepreneur’s Franchise 500

16.  Expense Reduction Analysts ranked No. 235 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Expense Reduction Analysts franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on Expense Reduction Analysts’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  134
• Outlets at the End of the Year:  130
• Net Change:  -4

2019

• Outlets at the Start of the Year:  130
• Outlets at the End of the Year:  118
• Net Change:  -12

2020

• Outlets at the Start of the Year:  118
• Outlets at the End of the Year:  141
• Net Change:  +23

Company-Owned

2018

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  0
• Net Change:  -4

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• The following tables present unaudited information about the historical Net Cumulative Receipts generated by 96 of Expense Reduction Analysts’ Regional Franchisees operating a total of 141 licenses for the period from January 1, 2020 to December 31, 2020 (the “2020 Fiscal Year”).

• This is a historic financial performance representation of active Regional Franchisees that operate a franchise substantially similar to the type offered in the Disclosure Document.

• The franchise information contained herein does not include data for (i) area franchises; (ii) company-owned and company-affiliated outlets; (iii) the 11 terminated, 1 who ceased operating, and 4 not renewed Regional Franchisees; (iv) the 2 inactive Regional Franchisees; and (v) the 30 Regional Franchisees that began operating in 2020.

Part 1 – Net Cumulative Receipts of Regional Franchisees by Range for 2020 Fiscal Year

Top 25%

• Number of Franchisees Within Range:  24
• Net Cumulative Receipts Range (Low):  $294,057
• Net Cumulative Receipts Range (High):  $1,031,987
• Average Net Cumulative Receipts:  $482,303
• Median Net Cumulative Receipts:  $385,176
• Number and Percentage of Franchisees That Attained or Exceeded the Average:  8 (33%)
• Number and Percentage of Franchisees That Attained or Exceeded the Median:  12 (50%)

Medium Top 25%

• Number of Franchisees Within Range:  25
• Net Cumulative Receipts Range (Low):  $142,205
• Net Cumulative Receipts Range (High):  $280,843
• Average Net Cumulative Receipts:  $193,824
• Median Net Cumulative Receipts:  $181,779
• Number and Percentage of Franchisees That Attained or Exceeded the Average:  11 (44%)
• Number and Percentage of Franchisees That Attained or Exceeded the Median:  13 (52%)

Medium Low 25%

• Number of Franchisees Within Range:  24
• Net Cumulative Receipts Range (Low):  $46,659
• Net Cumulative Receipts Range (High):  $138,538
• Average Net Cumulative Receipts:  $91,071
• Median Net Cumulative Receipts:  $91,188
• Number and Percentage of Franchisees That Attained or Exceeded the Average:  12 (50%)
• Number and Percentage of Franchisees That Attained or Exceeded the Median:  12 (50%)

Low 25%

• Number of Franchisees Within Range:  23
• Net Cumulative Receipts Range (Low):  $0
• Net Cumulative Receipts Range (High):  $44,345
• Average Net Cumulative Receipts:  $17,756
• Median Net Cumulative Receipts:  $16,347
• Number and Percentage of Franchisees That Attained or Exceeded the Average:  11 (48%)
• Number and Percentage of Franchisees That Attained or Exceeded the Median:  12 (52%)

Part 2 – Average and Median Net Cumulative Receipts of Regional Franchisees for 2020 Fiscal Year

• Average Net Cumulative Receipts:  $198,073
• Median Net Cumulative Receipts:  $142,564
• Number and Percentage of Franchisees That Attained or Exceeded the Average:  43 (44%)
• Number and Percentage of Franchisees That Attained or Exceeded the Median:  49 (51%)

• “Net Cumulative Receipts” means Gross Revenue less any fees that you agree to pay in connection with any Joint Venture Agreement that you enter into with another Consulting Business franchisee to provide Approved Products and Services in connection with a given Client, subject to the terms of your Franchise Agreement. A joint venture agreement is an agreement entered into between a franchisee with another franchisee or third party that delegates certain responsibilities and duties to other people.

• “Range” refers to the relative performance ranking of the Regional Franchisees. Therefore, the “Top 25%” refers to the top 25% of the franchisee count, ranked by Net Cumulative Receipts, the “Medium Top 25%” range refers to the next 25% of the franchisee count, the “Medium Low 25%” range refers to the next 25% of the franchisee count, and the “Low 25%” range refers to the last 25% of the franchisee count.

• An “Active Franchisee” is a Regional Franchisee that was active throughout the entire calendar year from January 1 to December 31, 2020. To this end, an “Inactive Franchisee” is a franchisee that did not operate the Expense Reduction Analysts Business for all 12 months during the calendar year of 2020.

• “Net Cumulative Receipts Range” lists the actual high and low-end values of Net Cumulative Receipts in each Quartile.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Key Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️