What’s involved in being an Expense Reduction Analysts franchisee?

By Sarah Stowe | 29 Oct 2015 View comments

Since 1992 Expense Reduction Analysts has performed more than 14,000 successful cost reduction projects, helping organizations – large and small, private and public, for-profit and non-profit – find an average savings of 20 per cent in their overhead spend.

Number of franchisees:

30 active associates.

How many multi-units:

None.

Total franchise investment:

$84,500

Set-up costs inc fit out/stock:

Under $10,000.

Vehicle loans:

No.

Working capital required:

$50,000 to $75,000 for first 12 months.

Ongoing marketing and royalty fees:

Marketing is three percent, royalty 15 percent.

Training costs:

These are included in the upfront cost.

Any franchisor funding available:

No.

Average time it takes from initial enquiry to franchise opening:

12 weeks.

Term of agreement:

Five years with one option to renew for a further five years.

Lease:

Not required.

Main method of franchisor/franchisee communication:

Face to face, quarterly business meetings, webinars three times a month, annual conference.

Frequency of BDM visits:

As required but a minimum of quarterly.

Do you have a franchise advisory council?

No.

Lead generation – is it centralised or local?

Both.

What and when was your last investment in back office reporting?

Customer relations management (CRM), July 2009.

Percentage of franchisees up for renewal who did renew since November 2008:

Not applicable.

The number of closures since November 2008:

Two.

Frequency of franchisee profitability reporting:

Monthly.

Average franchise turnover July 2008 to July 2009:

Confidential.

Growth plans for 2010 to 2011:

To appoint eight new franchisees in 2010, and 11 new franchisees in 2011; to continue expansion in NSW and Victoria.