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Looking for feedback on "Expense Reduction Analysts" franchise. Any impute would be helpful!

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May 31, 2017
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FindMeAFranchise LLC
Jefferson County, KY

Hi Jeff-----my answer is going to be a bit different from the first answer you received. Without knowing the name of the franchise, this does sound like and probably is, a Consultant type franchise. These type franchises can be very good for the right candidate. The key to buying any franchise is making sure you understand the process of buying and you have done the proper due diligence. Validating with other franchisees will tell you if there is a market and the potential income that can be made. In my experience, many of these franchises are home-based and are not territory restricted but account restricted--meaning, other franchisees can not go after the same client as long as you register your potential client in an internal system. If the one you are looking at is territory restricted, then you will need to assess the size of the territory compared to the number of businesses that can be potential clients compared to the number of existing consultants already doing that type business. The question to ask in regards to this is; what is the average number of clients a franchisee must services if a certain income level needs to be maintained..i.e 6 figure income. Then compare that with the number of businesses, competitors etc. These type franchises can be win-win for both the consultant and the client because the client usually pays nothing unless the consultant can save them money by renegotiating an existing contract. There is competition in this type business, just like any business, but if you are buying a franchise, you are hopefully buying a proven and successful system---this is part of your due diligence to find out. Hope this helps.

Apr 7, 2009
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Franchise Advisory Group

Jeff, it sounds like this is a consultant Franchise and if that is the case, than you need to look at a couple of things. 1) The chances are there is a great deal of cold calling, so you have to be sure you are okey with that. 2) You have to make sure that there is a market for that. There are a great deal of people out there that may do similar things, e.i. CPA's, Business Coaches, etc. 3) This is the type of business where you need to be able to establish yourself as an expert and gain the trust of your clients before they let you in. Also, a great number of these Franchises sell you restricted territories. In my opinion and experience I would not buy a business where I am restricted where I can do business.

Apr 4, 2009

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