Expense Reduction Coaching
Expense reduction coaching is booming. Expense Reduction Coaching® (ERC), pioneered the expense reduction industry back in 1993 as the first company to offer our services on a contingency basis, focusing on multiple expense categories, with no vested interest in one supplier over another. Our franchisees enjoy the opportunity to make money “immediately,” with a minimal learning curve, as our preferred suppliers and outsourcing partners do all the “heavy lifting.”
ERC creates unique value. Our franchise system is based upon our proprietary “Corporate Cost Reduction Process.” Franchisees are trained to market and perform services designed to reduce long-term costs, using ERC’s proprietary software. Our franchisees are not required to sell specific products, rather analyze client’s expenses, negotiate with national, regional, and local suppliers and make recommendations which result in long-term savings.
- We are a risk-free, free resource for our clients
- We simply share 50% of savings, over a 24-month period
- We possess unparalleled market knowledge of expense categories
- We are an independent, impartial and objective resource
- We are motivated to spend the time and effort to maximize savings for our clients
- We are in a position to remove clients from uncomfortable supplier situations
| |
Operating Units |
12/31/2009 |
12/31/2010 |
12/31/2011 |
|---|
| | Franchised |
10 |
20 |
21 |
| | % Change | -- |
100% |
5% |
| | Company-Owned | 0 | 0 | 0 |
| | % Change | -- |
-- |
-- |
| | Total |
10 |
20 |
21 |
| | % Change | -- |
100% |
5% |
| | Franchised as % of Total |
100.0% |
100.0% |
100.0% |
Investment Required
The franchise fee for an Expense Reduction Coaching franchise is $45,000.
Expense Reduction Coaching provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| |
Initial Franchise Fee | $45,000 | $45,000 |
| |
Tuition |
$10,000 per person |
$10,000 per person |
| |
Conference Room Usage (6 months) |
$1,200 |
$4,800 |
| |
Travel & Living Expenses |
$1,500 per person |
$2,500 per person |
| |
Annual Insurance Premium |
$350 |
$750 |
| | Equipment | $150 | $3,000 |
| | Marketing Aids | $1,000 | $2,000 |
| | Additional Funds (6 months) |
$8,000 |
$9,000 |
| |
Total Initial Investment |
$67,200 |
$77,050 |
Ongoing Expenses
Expense Reduction Coaching franchisees pay a monthly royalty fee ranging from 5% to 15% of gross revenues depending on amount of annual gross revenue. Other fees include an $85 per month technology fee and a mandatory annual conference attendance fee of $450 plus expenses.
What You Get—Training and Support
At Expense Reduction Coaching®, training is not a single event, but a dynamic, ongoing educational process. Our continuing professional education includes a Business Launch Curriculum that starts within 48 hours of joining our team. We leverage technology to bring continuing education and resources to our team 24/7. You’ll be guided by a mentor through our virtual curriculum which prepares you for an on-site event at our Performance Enhancement Center.
Territory
Expense Reduction Coaching® grants a saturation maximum—ERC will not place more than one single unit per 1,000 pay rolled businesses in a given state or group of states. The rights granted within the territory are non-exclusive.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2012 FDD. The 2012 write-ups will be incorporated into the 2012 Edition of Bond’s Hottest New Franchises publication.
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