EXPENSE REDUCTION ANALYSTS Franchise Complaints
Expense Reduction Analysts franchise complaints include an extremely high franchise failure rate, and aggressive franchisor bullying tactics to keep failed franchisees from warning away prospective franchisees.
Are you familiar with the Expense Reduction Analysts (ERA) franchise opportunity? Please share an anonymous comment below.
Also Read: ERA EXPENSE REDUCTION ANALYSTS Franchise Fraud Allegations
The Expense Reduction Analysts (ERA) website claims ERA is “one of the world’s largest and most successful consultancies for cost, purchase and supply management…”
“More than 700 experts in over 30 countries around the globe are already part of our network and have carried out thousands of projects since 1992. Our business opportunity appeals to qualified professionals that will become trained procurement consultants with the ability to deliver valuable savings to clients and/or to win new business.
“As a franchise partner you have the potential to generate a substantial income for you and your family. You can run your own consulting business with high flexibility and control your work-life balance…”
However, one former Expense Reduction Analysts franchise owner told us a different story.
After losing everything, an anonymous ERA franchisee told us he/she feels used, bullied, financially raped.
The franchisee feels like he/she escaped from a “financial serial killer, yet they are still free to pillage future victims.”
The franchisee claimed that many of his/her fellow franchisees suffered devastating failures, but all were so intimidated by the company’s legal threats and TRA (Termination and Release Agreement) that they are too afraid to even speak to fellow “victims.”
Nearly Half of ERA’s Franchises Ceased Operation Between 2010-2013
To verify the franchisee’s claim that Expense Reduction Analysts franchisees were failing in droves, we obtained a copy of Expense Reduction Analysts 2013 Franchise Disclosure Document (FDD).
Sure enough, the FDD revealed that 304 Expense Reduction Analysts had been open in the U.S. between 2010 and 2013.
Of those 304, 125 (42%) franchises had been “terminated” or “ceased operation.”
Those numbers imply that nearly half the franchisees who invest in ERA thinking they’ll be getting “high flexibility and control” of their “work-life balance” will end up prematurely being terminated or ceasing operation.
For many, they received financial devastation in lieu of “work-life balance” and control.
Expense Reduction Analysts: “still free to pillage future victims”
One former Expense Reduction Analysts franchise owner believes the system is rigged from the start, stating “they knew from the beginning what they were going to do to me financially.”
He/she claims that Expense Reduction Analysts created a climate of fear and shame in which franchisees are afraid to let on to their fellow franchisees that they are struggling.
The franchisee writes “The ERA franchisee culture is that none of the franchisees wanted to reveal they were struggling. No one wanted to admit that things were not going according to what the Expense Reduction Analysts franchisor said should happen.”
The franchisee states that once they fail, franchisees are forbidden from sharing their negative experiences with future franchisees with a gag order (“Confidentiality and Non-Disparagement”).
So, evidently, the cycle is free to go on and on…
If you are considering an Expense Reduction Analysts franchise, or really any franchise opportunity, consult with an experienced franchise attorney and other qualified advisors.
ERA EXPENSE REDUCTION ANALYSTS Franchise Fraud Allegations
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60 thoughts on “EXPENSE REDUCTION ANALYSTS Franchise Complaints”
I also went to a discovery day where there were a lot of city types attending I’m glad I decided not to proceed with ERA but now wonder how many of people on discovery day I was on did and if so lost money
I went to a discovery day last week in Southampton. Very convincing story and with the support of the BFA and HSBC. The comments above though tell a different story so will be re-considering. Thanks for all the comments and input.
If your reading this thread and using it as a basis to make any sort of decision then any franchise is wrong for you. there are only about 5 people on here saying don’t do it. Obviously these are just the people who lacked the motivation to make the business work, didn’t like hard work or just lacked the ability and are doing the typical thing of pointing the finger as someone else ignoring the fact that most people clearly succeed. If they didn’t there wouldn’t be an ERA. One of the biggest mistakes people make is attaching themselves to other failures and sharing their shared lack of success which is what is happening here. its really very simple. Do your due diligence. Speak to existing franchisees and make sure you speak to the ones you want to (just look on LinkedIn for them), make your own decision and most importantly be prepared to work very hard. Nobody will tell you it will be easy as it wont but it does work. Don’t allow yourself to be swayed but the chuntering of a few people who failed and have nothing better to do then still sit and complain. Its no wonder they failed if they spent their time complaining!
Half of the post above is information disclosed by the company itself in the FDD.
“To verify the franchisee’s claim that Expense Reduction Analysts franchisees were failing in droves, we obtained a copy of Expense Reduction Analysts 2013 Franchise Disclosure Document (FDD).
“Sure enough, the FDD revealed that 304 Expense Reduction Analysts had been open in the U.S. between 2010 and 2013.
“Of those 304, 125 (42%) franchises had been “terminated” or “ceased operation.”
“Those numbers imply that nearly half the franchisees who invest in ERA thinking they’ll be getting “high flexibility and control” of their “work-life balance” will end up prematurely being terminated or ceasing operation.”
We have not received an answer to our question as to why the turnover rate indicated in this FDD is alarmingly high.
Do you have any insight into this?
afraid not. I was referring, as were the majority of comments, to the UK operation
I don’t believe franchisors provide FDDs in the UK so I do not have the franchise openings and closings and turnover rates for the UK like I do for the U.S. (which is alarming, in my opinion). Do you have any hard evidence that this concepts works if you work it in the UK? Because the U.S. turnover is concerning and the company does not provide any answers regarding it.
I got involved with these when they first came to the UK before it was a franchise and it cost me around £7k with a £250 per quarter support fee. The people involved then we’re Fred Marfleet, William Vernon and Stephen Dunston Marsh. Mr John Allison got involved and turned it into a franchise and the cost went up by £10 k plus Weekly rent which at the time I would never had been able to repay. They took my money, binned me off and left me high and dry with a loan to repay. Imagine my surprise when I have just found out that a certain Frederick Marfleet is still selling this concept? I still have all the material they sold me after 25 years.
The poster ‘Do Avoid’ mentioned trying the alternative Auditel, but it appears this is also run by the Allison family so is it any better???
I’m considering an ERA franchise and I was confident on it until reached this post. I took a quick look on all replies and still have doubts on the reasons leaded to failure some franchisees. Most of them blame the model and ERA system.
The ERA advertisement is clear to me when defines de profile needed to success. I believe I have that profile since I love data analysis, project management and sales. Is it possible that the high percentage in franchises closed (assumed that figures are confirmed one of this days) is due the advertisement was not clear enough in the past, so, too many franchisees with incompatible profile were recruited by ERA? If so, certainly (to me) ERA has part of the blame.
ERA looks to me like a franchise to be a salesman, and then work on the sales everyone does. They will provide the system, methodology and some other tools. Then is up to everyone to succeed or fail.
Are those fraud allegations due ERA is not providing what they are suppose to do? Is the system not working for what reason? Projects (sales) will not come for what reason? Is the methodology not effective enough? Please advise.
T.Blank. I too went to discovery day, and I am now trying to find the truth. Charlie Smith the new current CEO told me that in the past, this concept attracted people who were data analysts. Because ANALYST was in the name. He said many of these people were more comfortable with a spread sheet than a customer, I.E. really lacked people skills. I would be interested to know if you went ahead and committed to the opportunity, or you backed away.