Expense Reduction AnalystsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Expense Reduction Analysts franchise requires a total initial investment of $76K – $106K, including a $70K franchise fee. Per the 2024 FDD, average unit revenue was $327K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $76K – $106K
- 20th pct Business Serv…
- Avg gross sales
- $327K
- 7th pct Business Serv…
- Royalty
- N/A
- Units
- 146
- 44th pct Business Serv…
- SBA default
- 11.1%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.6x in gross revenue, well above the typical 1.5-2.5x range.
Bottom line
- Total investment $76K – $106K including a $70K franchise fee.
- Average unit revenue of $327K/year (median $269K).
- Verdict D (Below Average) with a risk score of 71/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Expense Reduction Analysts, Inc.
- Parent company
- Montgomery Investment Co SA
- Incorporated in
- CA
- HQ
- 16415 Addison Road, Suite 410, Addison, Texas 75001
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $5.3M
- vs $5.4M prior year
Overview
About
Expense Reduction Analysts franchisees operate as B2B consultants, identifying cost-saving opportunities for mid-market clients across procurement, operational efficiency, and vendor management. Day-to-day work involves client prospecting, needs analysis, implementation oversight, and ongoing account management. The model relies heavily on sales capability and relationship-building in a competitive consulting landscape.
- CEO
- Charles A. Smith
- Headquarters
- TX
- Founded
- 2002
- FDD year
- 2024
- States available
- 22
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $70K | $70K |
| Working capital (3–6 mo) | $3K | $6K |
| Equipment, build-out, other | $3K | $30K |
| Total initial investment | $76K | $106K |
Source: Expense Reduction Analysts 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$46K
14.0% margin
Unlevered ROIC
48%
EBITDA / total invested capital
Payback
25 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $76K – $106K
- Better than avg vs category
- Liquid capital req'd
- $3K – $6K
- Better than avg vs category
- Franchise fee
- $70K – $70K
- Near category avg vs category
- Royalty
- Greater of 15% of annual Net Cumulative Receipts or the a…
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 18.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 18.0% of rev |
At 18.0% total fee load, roughly $59K per year goes to the franchisor before you pay a single operating expense.
Financial Performance
- Avg gross sales
- $327K
- Per unit, per year
- Median gross sales
- $269K
- Item 19 type
- Net Cumulative Receipts
- Sample size
- 102 units
- vs category median 32 · large
- Range (low → high)
- $79K→$1.5M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
vs Business Services averages
How Expense Reduction Analysts Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 146
- Opened
- 23
- Last reporting year
- Closed
- 15
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- +5.9%
- Net unit change last year
- 3-yr CAGR
- -0.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 9
- Loan volume
- $1.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 11.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 66.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Expense Reduction Analysts's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Modest growth trajectory, opaque profitability metrics, unprotected territory, and high fixed royalty minimums create meaningful financial and competitive risks that warrant detailed franchisee validation.
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 71 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — cannot verify profitability claims against $76k-$106k investment
- 02MEDSlow unit growth of 5.9% YoY with only 146 units suggests limited scalability or market saturation
- 03MINORUnprotected territory creates direct competition risk from other franchisees and company-owned locations
- 04MINORHigh royalty floor ($1,000-$1,250/month minimum = $12k-$15k annually) creates break-even pressure on franchisees below $80k revenue
- 05HIGHInternational litigation history (Germany, Switzerland) raises questions about franchisor's dispute resolution practices and affiliate management
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | non_exclusive |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 95 hrs
- On-the-job training
- 0 hrs
- POS system
- ERA Management Information System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ERA Management Information System
Item 20 · call current owners
Franchisee Contacts
90 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Expense Reduction Analysts · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Expense Reduction Analysts franchise?
The total investment to open a Expense Reduction Analysts franchise ranges from $76K – $106K, with an initial franchise fee of $70K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Expense Reduction Analysts franchise owners earn?
According to Item 19 of the Expense Reduction Analysts FDD, the average gross sales per unit is $327K. The median is $269K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Expense Reduction Analysts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Expense Reduction Analysts (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Expense Reduction Analysts franchise locations are there?
As of their most recent FDD filing, Expense Reduction Analysts has 146 total units in the United States, including 141 franchised units and 2 company-owned units. 23 new units were opened in the latest reporting year.
Is Expense Reduction Analysts a good franchise to buy?
FranchiseVerdict rates Expense Reduction Analysts as a D-grade franchise with a risk score of 71 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.