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…”
“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.”
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.
Also Read:
ERA EXPENSE REDUCTION ANALYSTS Franchise Fraud Allegations
ARE YOU FAMILIAR WITH THE EXPENSE REDUCTION ANALYSTS FRANCHISE OPPORTUNITY OR THE ERA FRANCHISE CONCEPT?
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TAGS: Expense Reduction Analysts, Expense Reduction Analysts franchise, Expense Reduction Analysts franchise complaints, Expense Reduction Analysts complaints, ERA franchise, ERA complaints, ERA Franchise Complaints, Franchise gag orders, franchise churning, Unhappy Franchisee, franchise warning, franchise complaints
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That's not how it works in the UK, which is run by the Allison family as a completely separate and successful entity. The training and support provided in the UK from both the Franchisor and from my colleagues within the network is excellent and although there is fallout from failed franchisees it is a significantly smaller number. The success in the UK in my opinion is down to us all working together. ie Franchisor and Franchisee.
Comment on the Expense Reduction Analysts (ERA) article - I must admit that I'm surprised by the article on Expense Reduction Analysts in the USA. As a franchisee in ERA's UK operation, I am staggered at how different my experience - over 8 years - has been from the views and statistics shown in the article. I can't comment on the USA operation, but thought some perspective from 'over the pond' may be of interest.
I found that the UK Group Office was very supportive when I joined and continues to respond quickly to my needs. I don't recognise the franchisee turnover rates quoted in the article either - I am told that they are currently around 10% in the UK (which fits with my gut feel for it, based on the associates I know) and know that some of the leavers last year were retirees after 10 years or more or who suffered serious illness (which is sadly more prevalent, given the age profile of many of our franchisees).
The UK operation has been owned and run by the Allison family for well over a decade and the CEO Rob Allison has taken care to include franchisees in the development of the business, even creating a separate board to advise on and oversee strategy.
ERA UK is not perfect - no business is - but my experience has been one of a collaborative team of franchisees working alongside and supported by a dedicated Group Office function. I'm still learning more each week - and I lacked the skills and experience to run a successful business when I joined (though I probably didn't realise it!). I have had to work hard to succeed, but I have felt supported by the franchisor and fellow franchisees.
As a franchisee within the UK network, which I would add is a separate entity to the US one, I'd just like to share my experience with anyone concerned.
I joined the network coming up for 7 years now and although I’ve had my up’s and downs (not uncommon with most business owners in this economic climate) I still consider joining the ERA network to be one of the best business decisions I’ve ever made.
The chance to work with many like minded superbly skilled professionals and to create a business and client base I’m proud of and that delivers a good lifestyle and income is what ERA UK has delivered to me. Throughout I’ve had the support of my peers as well as the team at group office enabling me to reach the goals and targets I set myself. Don’t get me wrong, I’ve had to work hard, especially at the beginning. Nothing comes for free and anyone buying a franchise that expects things to lad in their lap afterwards is misguided but with the correct mind-set the support to achieve has always been there for myself and others like me in the UK.
Many of my valued colleagues within ERA UK have been with the organisation for a number of years but at the same time new blood is coming through ensuring the continuous development, expansion and improvement of the skillset of our network, benefiting us all. Whatever the experience of the franchisees in the post and however justified or unjustified their comments are (I’ve no way of knowing), I’d just like to say that my own differ completely with regard to the UK operation.
Wow, a website for people who haven’t run a successful franchise.
You'll see from my email address that I'm a franchisee with Expense Reduction Analysts in the UK. I'm just about to start my 7th year and I have to say that the franchisor in the UK has provided much more than I expected at the point of signing.
I am in the UK and this article is about the US operation so it could be different but the UK operation bears no resemblance to the description in the article.
The franchisor in the UK has never over promised to me personally and I feel very free to discuss any issue with either the franchisor or my fellow franchisees.
The support that is available in the UK is great and you get the overwhelming feeling that the franchisor wants EVERYONE capable of succeeding to succeed. The main focus of the franchisor in the UK is to help franchisors build successful businesses so that the royalty payments keep growing.
I suppose that anyone who starts a business and doesn't make it work will be looking for reasons why and with the higher success rate with any franchise operation it's harder to accept that their reasons might relate more to the person than the business.
I have been an ERA franchisee in the UK for over 15 years and have managed to build a very successful business, as have many colleagues. I am in no position to comment on the US operation, but in the UK I can assure you that it is possible to build a successful and high earning business.
As a UK franchisee I continue to gain tremendous value from the high level of specialist industry knowledge and expertise that my network peers offer my business.
I must stress however that rolling out a process and delivering corporate methodology will never guarantee success in an ERA franchise, in the way it might with a blue collar or retail franchise. Success will be built upon interactions with, prospects, clients and most essentially other network members within an interdependent franchise group. Sadly, the nature and requirements of this franchise inevitably mean there will be a degree of failure among franchisees, as it is impossible to absolutely guarantee success.
I know that concern was expressed within the UK group some years ago about franchisee turnover creeping up, which resulted in the franchisor introducing a new academy process and improved due diligence before allowing individuals to purchase franchises. Since these changes a number of potential franchisees have not been allowed to acquire franchises and UK franchisee turnover has fallen substantially.
So to summarise, there will always be those that fail with this kind of franchise, but there will be big successes as well. As with any commercial decision making process the potential franchisee must consider the balance between risk and reward and very importantly ask themselves if they are bringing relevant skills that will allow them to be successful.
Personally I can’t comment on ERA USA but I’ve been a franchisee with the Allison family in the ERA UK business since 2006 and I’ve got to say the franchise has delivered far beyond my expectations in that time. I have had superb support from Head Office and work with many talented colleagues to deliver benefits to clients and myself. I was under no illusion when I joined the franchise that I would have to work hard and use my skills to deliver the results that I wanted. I am now reaping the benefits of that hard work both financially and in work - life style balance.
I have seen the article "Expense Reduction Analysts-Franchise Complaints" and I believe it is important to point out that the comments made in this article seem to pertain to the experiences of franchisees in the US. As a longstanding (11 years plus) UK franchisee I cannot comment on the experience of associates in the US business, but I do have considerable knowledge of the UK operation. Historically franchisee turnover has hovered at around 10% per annum and as I understand it this would typically include people leaving the business for retirement, other employment opportunities, health related matters and yes indeed some leave because they struggle to make the business model work for them. However this number is low and certainly bears no relation to the figures quoted for the US operation.
Potential UK franchisees are permitted very thorough due diligence and it would be difficult to imagine reaching the point of making a commitment without being very clear that (like any new business) hard work is absolutely key to success.Once in the network there is considerable support, training and development throughout your lifetime as a franchisee.
The UK business is privately owned by the Allison family and an entirely separate entity from the US business. Because it is a family run business it has always been characterised by a high level of personal interest in and attention to the franchise network from the franchisor.
Support at a personal, regional and national level has always been a feature of this business and it wold be unfortunate if the comments relating to the US business were in any way associated with the business I know here in the UK.
Sir, your website has been brought to my attention and I have been moved to respond. My experience as an ERA Franchisee in the UK for the past 8 years has been a fulfilling and successful experience. I do not recognise the issues or complaints that seem to litter your website from the USA.
The franchise in the UK is very well run, and lines of communication between the franchisee's and the Franchisor, are open and honest. We are regularly consulted on changes and developments and furthermore, the Franchisor has made significant investments in the Franchise, particularly in recent years, from which we all derive benefit. I am not saying that it has been easy, I have put a lot of hard work into developing my business over the years and there is no substitute or short cut for this. Of the casualties suffered in the UK, some of which I have known very well, this work ethic has often been absent. Hardly a fault of the Franchisor!
I am also stunned at the USA franchisee turnover figures and can confirm that in the UK, our level of failed franchises is tiny in comparison, although I know ERA are working hard to reduce this number and offer support and guidance for the continuous improvement of all our businesses, new and old.
Do not judge ERA UK by what goes on in the USA. Over here we do great work for our Clients for which we are fairly rewarded. It sounds like the two companies are very different organisations.
Steve Rundle - ERA UK Franchisee.
I joined ERA in the UK over 7 years ago and feel it's important to stress that the experience of some of the US franchisees (as described above), is not representative of all the other 30+ countries in which ERA operate.
While accepting that these figures are indeed worrying, and I do sympathise with the individuals who make up the 125 "failed" franchisees, globally there are many, many more successes than failures. ERA in the UK only experiences approximately 10% of franchisees leaving the network annually, a far cry from the "almost half" quoted for the USA.
Since 2010 it has been anything but easy to start a new business, even with the support offered by a franchisor, but it is most definitely possible to succeed.
My own experience has been that, after a very challenging first 1-2 years, my business has gone from strength to strength over the following 5 years.
Finally, might it be that some of those 125 need to look to themselves and their own efforts, before looking around for someone else to blame for their "failure"!
I have known ERA UK for 10+ years and have found the UK network and group office great to deal with, providing an outlet for significant work opportunities and sharing ideas across a common group of people. ERA in the UK is a totally separate entity run by the Allison family and is separate to the USA franchise, so this differential is important.