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.
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
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.
We appreciate the input from the UK ERA franchisees and are relieved to hear they have had a more positive experience than their US counterparts. Kudos to the Allison family for earning such positive comments from their franchisees.
However, from a practical standpoint, a company cannot market itself as a successful global brand one moment, and then try to distance itself from its global counterparts the next. If the allegations of an unethical, predatory and bullying US ERA franchise organization with a high “churn” rate is true, it will eventually tarnish the reputation of the ERA brand abroad, as well.
Instead of “blaming the victims” or simply claiming its a “different ERA” in the US than in the UK, perhaps more enlightened ERA entities abroad should put some real pressure on the global parent company to intervene in the U.S. and stop this threat to the global brand.
Sure, there are slacker franchisees in every organization, but when the failure rate is approaching 50% there’s a problem at the top. Those of you who are quick to blame the ERA franchisees for their own failures should remember who selected them and approved them as franchisees: ERA.
Hello,
I have been a franchisee in the UK since mid 2006.
When I joined and did my due diligence through late 2005 and early 2006, I could see that the business model clearly worked. The key thing was then whether I could make it work for me and whether that was perhaps a lower risk approach than buying an existing business or starting from scratch.
On entering the franchise world you are entering the world of self employment. I think sometimes people can enter the franchise world thinking it is all going to magically happen for them and that all the success that they dream of in their business plan will land in their lap automatically. For some it can appear as though they are “buying a job” rather than “buying a business” that they have to build.
It isn’t like that at all. It is hard work. In the UK we have excellent support from the Franchisor in mentoring new franchisees through the first two years or so of the business to ensure that they are up and running and that they are being held to account against their business plan.
The UK is a hugely collaborative network where the core ethic of reciprocity reigns supreme. My business is built to focus on “business development”. I rely on my colleagues in the network to deliver my projects for me and on the Franchisor to recruit/train/develop/support the right talent pool so that I know I can talk to a client about any cost area secure in the knowledge that we have the resource to deliver that project. We also have a number of “network wide” initiatives in play to actively help franchisees to grow their business to the mutual benefit of the franchisees and the franchisor.
In nearly 8 years it hasn’t disappointed.
I think there can often be a view that “I am leaving the corporate world and therefore don’t need to worry about business plan, goals, targets, etc”. Nothing could be further from the truth. You have to work “on your business” as much as you work “in your business” – read Michael E Gerber!!
Admin, you’re completely right to suggest that any potential franchisee should consult with an experienced attorney and other professionals. Although a more important element of due diligence is to speak to existing franchisees. ERA in the UK freely afforded me that opportunity 4 years ago and I took full advantage of it speaking to, or meeting, upwards of 30 franchisees of my choice before making a financial commitment.
Like any business there are good points, bad points and potential pitfalls, and it’s fair to say that given the much more concentrated geographical spread of my 150 or so colleagues in the UK there’s an opportunity for far more mutual support and development of niche service offerings than there is in a vast nation like the US.
ERA in the UK has been highly supportive to my business as it’s in both our long term interests that it succeeds. It would be informative to understand what lies behind the numbers in the US because, as you say, issues in one territory have the potential to damage a brand I’m proud to be part of.
Hmmm!
This has just come to my attention. Thank God the UK is different to the USA! I have been active as a UK franchisee for 12 years and always been impressed by the efforts for the franchisor here to work with the franchisees. The focus here is on basing the success of the franchisor’s business on the success of the franchisees’ businesses, not on flogging franchises to anyone with a cheque book.
The factor that most influenced me to joining in the first place was the openness exhibited in facilitating access to existing franchisees as part of MY due diligence process.
ADMIN’s response says that ERA is a global brand and ERA global should intervene in the USA. I cannot argue with that and, indeed, it may be happening. I started to type here a reply to ADMIN about its own duties and responsibilities when publishing a story like this, but better, I think, to merely add my voice to those saying that even if/when a story is true about the USA, the rest of the world may be different. My experience in the UK (and clearly many of my colleagues) is that certainly things are different here.
I have been a franchisee with ERA UK for 16+ years and can endorse the comments made by my colleagues. The Allison family run a good business. Not sure how they can influence the global brand apart from by setting an excellent example, which is what they (and we) do.
I was stunned to see this article and as an entirely different entity to ERA USA, it seems very different this side of the pond!
Having been a franchisee for nearly 4 years, my experience is exactly what I was told to expect from this business model over this period of time. Buying a franchise is not a passport to success. It requires effort, dedication and a specific approach to make it work. The benefits of a franchise is that that you receive support and training from Group Office that ensures you will be as successful as you can be for which the Alison family in the UK have created an extremely robust support infrastructure. The rest is purely down to the individual’s diligence.
I often speak to potential new franchisees and have frank and open conversations about the potential of this business model. Group Office have no influence over these conversations which is testament to their confidence and openness to ensure that the franchise is sold responsibly and ethically.
I find it interesting that many of these UK posts are within minutes of one another which reflects on the fact that your internal communication rally works. But where are your US counterparts? The issue is clearly not with the UK. Are there no US franchisees willing to defend their great company name? That is what I’m waiting to hear.
A fundamental questions
1Can this really save businesses actual money for example Electricity / Paper and tel in some countries there are only few choices so
The savvy company itself can call around and get a best deal
What magic wand ERA has?
Can anybody give a example
ERA in the US is very clear in their pursuit of US franchisees that this endeavor pure entrepreneurialism and that constant selling is part of the game. I’ve been in this type of business for 25 years. Some good, some bad, but mostly very good. Its not ERA that is the problem, its the lack of hard work on the part of the franchisee if they experience failure. Sorry, but the truth hurts. I’ve seen hundreds of people get in and out of the gain-share revenue biz, and ERA is no different. Its not easy. Its constant work. We have many talented people that are making very good livings and we all do one thing well: work very hard!
Came across this thread by accident however I am an ex-ERAUK franchisee and so may be able to add an extra dimension to what the other UK based posters have said, given that they are existing franchisees.
I joined in 2006 and was on board for 5 years until I needed to exit the business due to a (positive) change in personal circumstances. The uninitiated reader may feel that the glowing endorsements of ERA by the UK franchisees above are self-fulfilling (they would say that, wouldn’t they) my comments are from the standpoint of having no axe to grind with ERAUK one way or the other.
Having set out my stall, I can honestly say that I endorse 100% what the UK franchisees say about the operation here. My experience was that they delivered almost everything they promised (no franchisor is perfect) and often went beyond what was expected. A robust infrastructure was in place to ensure that anyone struggling with either their business approach or their new self-employed status had the offer of mentoring from more successful franchisees and/or help from Business Coaches recruited and paid for by the Group Office. Shortly before I left, I attended a number of training courses at Group Office in Southampton and thought them to be of the very best of their type that I had seen in over 30 years of senior sales and marketing positions in a number of organisations and industries. The amazingly collaborative nature of the network amazed and delighted me from my very first day until the day I left.
As I said, I have no axe to grind and can therefore speak freely about my time with ERAUK. It’s sad that the USA experience of ADMIN doesn’t mirror that of the UK but I can only call it as I saw it and don’t regret a single moment of my time with the business.
Reading this site, seems to me that success at ERA comes down to 2 things;
1. the quality of the franchiser (in this case above, its the Allison family in the UK and they are clearly ethical and run a great organisation)
2. the capability & attitude of the franchisee
It would be good to hear from other geographies. I am interested in joining the Australian ERA group and am researching it.
Annette,
I am MD for Australia. I have taken up this role after 13 years as a franchisee, so perhaps I’m twice as biased as my UK colleagues. If you would like to contact me I’d be more than happy to answer any questions you have. Of course, we also provide contact details of the entire Australian team and encourage you to call any or all of them.
I hope to hear from you.
Kind regards,
David
I am currently investigating a number of business opportunities and in particular franchises. Most of the franchises I have looked at cost between £30K and £40K, a large investment and one I only wish to make once to build a business that pays me back many times over in the next ten years.
It has been interesting to read this thread as I am booked in for a discovery day at Southampton with ERA UK, where I can look more closely at the opportunity.
Does anyone with experience of ERA have any tips to get the most out of this day to help me in my research of this opportunity?
Ignore the clearly orchestrated replies shown above. Yes, there is a core group of successful franchisees (there has to be for it to survive). But, mark my words, it is unlikely to be you. As an ex-ERA franchisee I can tell you that the situation in the UK is, in my opinion, absolutely no different to that in the US. Perhaps worse.
If you do fall for it make sure you ask them EXACTLY how many lemmings, sorry franchisees, join and exactly how many leave and over what period. Be specific AND GET IT IN WRITING (you might need it later in court). Ask for the average lower quartile earnings of the entire network and, again, GET IT IN WRITING. Be very cautious – it is almost impossible to get information out of the literally dozens and dozens of failed ERA franchisees since they are all tied to a legally binding gagging order when they eventually buy their way out. Many of them having sunk their entire life savings or entered into crushing loans.
In my view it can only be a matter of time before this operation get a slot on prime time TV (I’m thinking BBC1 WATCHDOG here).
Meanwhile, if you are hell-bent on donating your hard-earned cash to the Allison wealth fund then my advice is to just write them a cheque for £50K+ and get on with your life.
Expense reduction business is distinctly different from food preparation, carpet cleaning, automotive oil changing or some of the other businesses ideally suited for a franchise business model. Operational cost reduction or expense reduction is an expertise that requires academic knowledge and many years of functional experience in industrial procurement or purchasing, engineering or cost accounting fields. As a principal business owner, one must be able to prove to a manufacturing company or small business that he or she has the knowledge & practical expertise to reduce costs & expenses in business operational areas that the company or business cannot do on its own. And, then you have to deliver tangible results time and again before you earn the trust & respect of businesses that would hire you to do the expense or cost reduction for them. You must prove that you are indeed better than the company’s own experts or else why would they retain you to do what their own experts are supposed to do. I know something about this because I have been doing it for a while and still learning from some of the best professionals at my current company.
Unlike a hamburger or ice cream stand, or carpet cleaning franchise, you cannot hire some semi-skilled people and train them in couple of weeks to do an excellent job of whatever your franchise is offering in the form of product or service. You must be a knowledgeable & experienced professional of exceptional skills in purchasing, cost accounting, business negotiations and such before you can hang your shingle and offer cost / expense reduction services. No franchiser is going to give you a magic wand or abracadabra mantra to start doing the expense reduction.
My heart goes out for people who have lost their life savings or floated hefty loans, hoping to make it good in expense reduction business. My colleagues have decades of functional experience and millions of dollars of cost savings to prove that they are experts in the field. Yet, we have to work hard on prospecting, selling to project management and delivering the results. It’s not an easy business folks but if you have what it takes then the rewards are fair & substantial. I hope it would help some of the folks who are thinking about getting an expense reduction or cost reduction franchise.
Gary Loveless and others – please, please don’t invest in ERA UK !!
The current franchisees who have posted above some very supportive comments about ERA UK are (with a couple of exceptions) examples of the “core” franchisees who have been with ERA UK for 9-10yrs or more, and are part of the Allisons’ very loyal “inner circle”. They are very successful people, and they cannot help but be aware of the phenomenal turnover of new recruits, but what can they do but try to preserve their own livelihood by defending the brand? Think of all the clients they would lose if the truth were to be made public, when this is a business based almost entirely on client trust and consultant integrity.
I was a franchisee for about 3 years in a strikingly similar business (let’s call it FRB* UK), which was owned and run by some strikingly similar people (let’s call them the Pugwash family, notably Captain Pugwash and his son, Master Mate).
If you are hardworking, a very experienced purchasing/sales professional and “get lucky” with a couple of lucrative clients early on to cash-flow the hefty monthly fees until you get your business on it’s feet, you may succeed in a business like FRB. As Joe Rushmore rightly points out, there are a lot of excellent reasons why people can fail at the cost-reduction business, and in my experience of FRB most of those who failed did not do so because of a lack of hard work or intelligence, but because they ran out of money to cashflow the business. This is great for Master Mate, who is only too happy when you are at your lowest ebb to take your hefty 6-months notice fees, legally gag you, and get on with his real business, stalking the next victims at £40K apiece. For the Pugwashes it’s a win-win! For you, like many before and after you, it will be consequent poverty, marriage problems, and clinical depression.
Bear in mind when doing your due diligence that current franchisees can NOT speak their minds in the same way that they will once you have “signed up” and won their trust. By then, of course, it is much too late.
There have been upwards of 170 FRB UK consultants at any one time over the last 5 years. There are currently about 120 consultants, at least 25 of whom have joined FRB in the past 2 years (another cool £1M in the coffers). FRB still recruit around 12-18 a year. Ask yourself – year after year, where do all these new recruits go? Does Captain Pugwash sail them away in his yacht singing “Kipper me Capstans”?
*FRB UK is simply a very lucrative *Franchisee Recycling Business* with a cost reduction consultancy “shopfront”, made to seem respectable through “BFA endorsement”.
I’m so glad someone at last has had the courage to stand up to this parcel of rogues. I too am a ‘failed’ Expense Reduction Analysts (ERA) franchisee and I can confirm that the comments from S. Camcon and B. Ware above mirror exactly my own experiences with this company.
The vast majority of ERA franchises fail. As Scamcon points out, yes there are successes, but I agree that these are a carefully groomed and nurtured core group which gives the franchisor a ready source of ‘happy franchisees’. Not a single one of the franchisees that joined the company in my entry tranche survived more than 2-3 years. Until the point of being stripped of all their cash most struggling franchisees are in denial. They want it to work and they don’t like to admit, even to themselves, that they have been conned. The unscrupulous franchisor is able to exploit this natural human fear of failure and the resulting tendency to be in denial. (BTW the ERA monthly franchise fee is payable even where no business is generated and it goes up substantially over a three year period).
The people who joined ERA at or around the same time as myself ranged from company directors, engineers, single mums, business-owners, NHS professionals, middle management, and so on. All were professional, intelligent people looking for a business in which to invest their redundancy money, their savings, pensions and, in some cases, their (re-mortgaged) homes. Over the first 6-12 months most of us believed we could make the business work if we just worked harder and held on a bit longer. Reality starts to bite around the 18-month mark. We started asking the questions we should have got the answers to (in writing) before we parted with our hard-earned cash. Questions like:-
How many franchisees have failed in ERA and lost all their investment?
Who are the top earners and what do they actually earn?
Who are the bottom earners and how much are they losing month-on-month?
How much cost-reduction experience/training is needed to effectively run this business?
Of course we asked these questions at the Discovery Days! And we were told plausible lies by the ERA management who were so deviously convincing we didn’t think we needed to get it in writing. Lies such as:-
“Only 2 franchisees have left in the last 5 years, 1 retired, and 1 was ill.”
“At least 10 people earn over £100K”
“1 guy only earns 35-40k – but he only works 2 days a week”
“Our 3-week training is all you need as we have such a great system in place.”
(the last untruth is especially contemptible:- the great ERA “system” turned out to nothing more than an antiquated Lotus email/CRM programme and a handful of bug-prone Excel Spreadsheets).
The owners of Expense Reduction Analysts UK, however, are not nearly so naive and trusting as their victims. They made us sign a contract in which we unwittingly agreed that, should we at any time in the future decide to terminate our franchise agreement, we would be required to sign their unseen ‘Deed of Termination’. It later transpires that this Termination Deed is more than just the Restrictive Covenant-type of document we were led to believe. In fact it is a Non-Disclosure Contract, the legal enforceability of which will make for an interesting court hearing.
Here is a taste of its contents:
6.2 The Franchisee and the Individual agree not to sue, commence, voluntarily aid in any way, prosecute or cause to be commenced or prosecuted against the Franchisor and/or its officers, directors, employees and agents any action, suit or other proceeding concerning the Released Claims, in this jurisdiction or any other.
7.1 The Franchisee and the Individual each undertake to the Franchisor that they shall keep strictly confidential and shall not disclose to any person the existence, subject-matter and contents of this Deed, nor the subject-matter and details of the negotiations between the parties leading up to the entering into this Deed and the fact that such negotiations took place.
7.2 In the event that the Franchisee and/or the Individual receives any queries relating to the Franchisee’s Business or is asked to provide information as to the reasons for the termination of the Franchise Agreement the Franchisee’s and/or the Individual’s response shall be limited to a statement that the termination was mutual and that all parties were entirely satisfied with the performance of their respective obligations under the Franchise Agreement.
Does any of that seem ‘reasonable’ to you?
To assist potential franchisees in their quest for the truth, here are a few cold truths about ERA UK and its franchisee churn:-
Over the 13 month period March 2011 – Apr 2012:-
17 new franchisees started. 31 franchisees left, of which:-
8 had done 3 years or more
3 had done 2-3 years
15 had done 1-2 years (another 2 had handed in their notice)
5 had done 1 year or less
A significant proportion (5 or 6) of the head-office staff also left in this period.
The current and previous ERA UK franchisees who have posted their supportive comments above (in a laughably orchestrated sequence) about ERA UK are (with a couple of exceptions) some of the loyal “inner circle” band of franchisees mentioned by both Scamcon and B.Ware.
Having joined at a time before the market was saturated with ‘cost-reduction analysts’ these exceptions were able to cherry-pick lucrative clients which bank-rolled the hefty monthly fees until they got their business going. Nowadays the rich pickings have long-gone and ERA franchisees are rigorously restricted as to the number of ‘suspects’ they are allowed to court (a massive operating restriction that is not revealed to franchisees until after they have signed up and parted with their cash).
The above views are my own as an ex ERA franchisee. If you read this and still decide to go down this route don’t say your weren’t warned.
Oh dear! Looks like ‘come in Captain Pugwash, your time is up!’ Anyone else care to add their ERA UK experiences? Come on guys and gals, its time to put a stop to their game before even more people lose their life savings. I estimate that between 120 and 200 folks (that’s at least £4.8M) over the years have contributed to the ERA UK retirement fund. Let’s at least try to prevent further victims.
If you are reading this then it’s a fair bet that you are planning to invest around £40 – £50k + fees + operating expenses + living expenses in a business that has a pretty good chance of success, right? And you believe that franchises have an 80% success rate, because that’s what the banks and the British Franchise Association (which is funded by the franchisors, not the franchisees) keep on telling us, right?
WRONG!
If you look under the stones you will find that franchises actually fail just as much as (and possibly more than) other start-up businesses. Franchise failure statistics are hidden and distorted because the actual franchised business continues on, regardless of the churn-rate of the poor bankrupted franchise casualties. Be aware that when you sign up for your ERA UK franchise, you won’t be able to call your new company anything with “ERA” or “Expense Reduction Analysts” in the name, as that would make it too easy to look up all the “dissolved” franchisees on the Companies House website. You are even forbidden to operate your own ERA-branded website to generate business (yes, in this day and age).
And don’t put your trust in the banks (as if!) just because they are falling over themselves to give you a business loan. UK banks are not required to keep or publish the figures on failed franchises – why should they care anyway; you’ve still got to pay your bank loan back (although you could just file for bankruptcy or hand them the keys to your house….)
I apologise for my apparent flippancy, but you’ll just have to believe me when I say it has taken a very long time for me and my many ex-ERA colleagues to recover, both financially and emotionally, from our “ERA era”. So for what it’s worth, here is my advice:
If you are seriously thinking of investing in ERA, or indeed in any franchise business, step right back from the franchise model and take a long hard look at what you are actually paying for BEFORE you part with your money. Don’t kid yourself. With the notable exception of some of the bigger (and more expensive) franchise names, such as MacDonalds or Subway, you are not likely to be buying into any real brand equity. So decide if you really need a “Franchise System”, Franchise “Support” or a Franchise “Brand”. With most franchises all you are guaranteed to get is a pile of ‘join our easy road-to-riches” bull****” and a lot, lot poorer. And if you do go ahead, get the answers to all your questions in writing and signed. Nothing more. nothing less.
POSTSCRIPT
Since leaving ERA I have set up and am running my own rewarding and growing business and there is plenty of help out there for start-ups that won’t cost you anything like £50K! Get down to your local FSB meeting and ask around.
Don’t get sucked in…
I have been alerted to this blog and wish to add my own experiences as a franchisee with Expense Reduction Analysts in the UK and to caution any prospective ERA franchisees from believing everything they are told by a couple of very convincing salesmen.
Sure, old man Allison, together with his junior clone and his crony franchisees will tell you that Expense Reduction Analysts is a great investment. It sure has been for them. Sales (of franchises) at £40K each + perpetual monthly fees are just great.
And of course no-one ‘fails’ at ERA. This is due to the fact that they are officially barred from failing – or at least admitting to failure – under the terms of their ‘legally-binding’ Termination Deed when they are finally milked of all their savings and can’t afford the mandatory monthly fees.
The continuous merry-go-round of franchisee failures at ERA UK allows the money generating scam to continue without interruption. ERA maintains that it limits the total number of UK franchises to around 125. Since it has been up at this number for many years is it not somewhat strange that they continue selling franchises hand-over-fist?
The reality is that literally hundreds of franchisees over the years have been mercilessly mangled through this cash-stripping machine before being forced to leave the organisation when their funds eventually run out and they cease to be of value to the controlling group. When they do it’s as if they never existed and it all happens without ceremony. All traces of that franchisee are instantly removed from what the company passes off as a ‘CRM’ system and they are backspaced into oblivion.
Why do so many ERA UK franchises fail?
It’s mainly due to lack of business potential, a lack of proper support and lack of a real proprietary system. The market is saturated, the ERA approach is antiquated and new franchisees cannot compete with longer-established incumbents.
I am an ex-ERA franchisee and quickly found that my £40,000 initial investment plus £’000s of mandatory monthly royalty fees had bought me absolutely nothing apart from restrictions, bullying, bureaucracy and internal politics. I didn’t receive so much as one single head-office referral in the whole time I was with this outfit and I discovered (but only after joining), that HQ ‘marketing support’ was an additional monthly fee!!
If you truly believe that an Expense Reduction Analysts franchise “is the a professional, ethical and profitable route to becoming your own boss” then go right ahead. Right now they are “looking for 12 people to join the ERA family. Could it be you?”
If it is, I’ll look out for you in the dole queue in a couple of years…
Good for you , at last ERA ex-franchisees are starting to speak their minds instead of being afraid of the Allison’s taking them to court. Its what the Internet does best! I was speaking with an ex Era franchisee the other day and he was actually more worried about his family finding out exactly how much money he had blown, than he was about being sued by the Allison’s! Good grief, the ramifications of this business are endless!
ERA are looking for 12 new people to join their team totalling a cool £478800 plus VAT. It looks to me as if this is their core business, rather than providing any procurement advice. I had a recent chat with three of them at a Franchise Exhibition and they were unbelievably rude and offhand. I quite fancied this franchise opportunity before I spoke to them. I can only thank them for not allowing my ego to get the better of me. I cannot say that I am impressed by the mutual ‘backslapping’ in the above posts and the claims of the US being in some way different to the UK. After all it is their brand.
Directors searchable under ERA seem to be doing very well for themselves. Maybe they are getting a share of the £478800.
“Directors searchable under ERA seem to be doing very well for themselves. Maybe they are getting a share of the £478800.”
You can bet your life they will.
Don’t forget, when you sign up for an ERA UK franchise, you are not allowed to name your business with anything “ERA-related” in the business name. This makes sure that no-one can find all the failed ERA franchisees by trawling the Companies House Dissolved Companies list.
Clever of them, huh?
“they were unbelievably rude and offhand. ”
You must’ve somehow let them know you didn’t have 40 grand to spare, borrow, or steal. Otherwise they would’ve been unbelievably charming and pleasant.
I am an ERA franchisee of 6 years standing. I too had a tough time establishing my business in the first few years, you can’t get away from the fact that this is self employment (albeit within a collaborative network with support from the franchisor – who has a financial incentive for your success) …. self employment is not for everyone, in fact I think that most people who join from the comfort of a corporate world find it very tough. The trouble is it that it has attracted many people who haven’t the temperament or skills necessary to succeed, something they are very reluctant to acknowledge to themslves. I do not recognise any of the names of the critics on this thread and I appreciate that some have feel it necessary to hide behind false names (e.g. the poisonous ‘B. Ware’), but I am a bit surprised at the level of anger and bile, most of the criticisms I just do not recognise as true. I have come across some very talented people within the franchise who have worked very hard to make it work and reaped the rewards. The level of naivety among new franchisees is sometimes very high and I know that myself and others who speak to those prospective franchisees who have asked to talk to us are brutally honest about the negatives. But sometimes they only hear what they want to hear, they are convinced of their own abilities.
I am not part of any Alison Fan cIub and ERA associates who posted last year in support are giving what looks to me like honest opinions, I know most of them will have their own minor criticisms about ERA and opinions on how it could be run better, but what of us hasn’t about how our organisations are run? The ERA franchise in the UK performs great service to it clients and we have our share of delighted clients I suggest that ‘B.Ware’, whoever you are, look at yourself and ask the questions about your own shortcomings and suitability for success in a consultancy, your ‘Mr Angry’ postings do not indicate to me that you have a personality likely to succeed in an environment where your ability to get on well with colleagues or clients is critical to success.
Pete, nice to hear from you ! Of course I am not going to reveal my real name – you didn’t see the gagging order I had to sign in order to extricate myself (read previous posters).
I am not Mr Angry (anymore, anyway) , just disappointed that I and countless others were taken in and divested of needed money. Maybe I WAS a bit naive, but about the trustworthiness of the Allisons, not about the need for hard work (my average week in ERA was about 60 hours).
I am now running my own new business which relies TOTALLY on my ability to get on well and consult with customers, clients and colleagues from all walks of life. I am currently extremely successful in this, and thus able to charge accordingly.
However, I must follow my conscience and continue to do what little I can to prevent others unwittingly walking into the misery that I and others have endured. To that end, this forum is just the start. I hope you continue to be successful Pete, and I wish you every advantage, but the ERA gravy train cannot continue. Maybe it is time to be true to yourself and bail out?
ERA UK offers you a wonderful opportunity…
*An opportunity to throw away something North of £50k. Probably much much more when you factor in your ongoing franchise fees and the opportunity cost from wasting 2? 3? 4? years of your life.
*An opportunity to add to the fabulous ALW (Allison Wealth Fund.)
*An opportunity to kid yourself into believing that you have been sold a viable business model.
*An opportunity to sign an unbelievably onerous contract which commits you to signing another, unseen and even more onerous, contract in the event of wishing to exit.
*An opportunity to risk your sanity, your trust in others and your self-respect.
Note: Only available to qualified applicants.
Qualifications required:
1. £50k+
2. A trusting nature
Expense Reduction Analysts – an opportunity like no other.
Well well, ive just seen this website so here are my thoughts, simply avoid them. I was with ERA my term was up for renewal, decided not to renew as the constrictions they put on me.
As for the praise above this cleary seems asked for, at least three of the above got paid for roles
Was it good for me yes, but ive moved on to better things, but I would tell you this its not working now for new people
My tip, speak to new consultants, visit the competion ie Auditel, but in the end shy away
GOOD LUCK
My tip ask around the new people, consider the alternatives ie Auditel, lower cost and more areas.
Good luck if you join you will need it.
I am NOT an ERA franchisee but I went along to a Discovery Day and learned all about the following advantages of taking part:
*Network of like-minded consultant’s
*Only available to qualified applicants
*Be your own boss
*High income potential
*Easy to learn system
*All the support necessary
*Database systems that are state of the art
*Award winning franchise system
*Long term business partnerships
*Low capital requirements
*Impressive results from existing franchisees
*Success level second to none
*Over 20 years of success
*No obligation Discovery Days
Then I read this blog and decided to go to Chepstow and blow my hard-earned dosh on the nags. At least it was fun!
Haha, fantastic name you have there, Ivan!
“Low Capital Requirements” – I guess that’s true because your friendly NatWest Banker will lend you the 40K (funny how there’s always a NatWest Banker hanging round ERA when you need one). You know, that £40K they magically conjured up by typing some numbers into a computer. Which doesn’t really “exist”, but causes lots of dosh to appear in the Allison’s ERA holding company bank account. And doubtless there’s a referral fee involved somewhere. Thing is, when you fail, they still want their conjured-up £40K back, except this time around it has to be real money, wot you’ve earned, matey. Funny, that…….
I can’t imagine that any lawyer would advise a client to sign a contract with so much protection language against any action against the franchisor. Tat would be the immediate tip off to me that they have things to hide. I met with a new franchisee a while ago and I almost cried hearing his costs and lack of qualifications. New baby new house and ERA. What a perfect storm.
Seems to me that after looking at all their market documentation you’d be be better off just starting a company yourself. No upfront fee, no monthly fees which are not offset by revenue. For the same money as the franchise you could probably hold out for a year longer and be no worst off.
What someone should do is start a “Former ERA Franchisee” web site and encourage the people who quit to add their leaving to a list independent for ERA. No complaints, no negative e comments. Just, “I started (date) and ended (date)
Wouldn’t that be a fun thing to watch them explain.
ERA Franchisee Rick White emailed us his rebuttal to this post a while back, and gave us permission to share it:
“The one commentary that you have posted on your website in regards to our company is not indicative of the manor in which business is conducted in the Expense Reduction Analysts organization.
“To be fair we have had our share of failures but the actual numbers are very consistently below national averages for new business failures in general. Some people have an idea that a franchise is a guarantee of success, it is not, it requires precise execution of a business plan, hard work and reinvestment in the business.
“It is not easy but it can be very rewarding. We have extremely successful franchisees and for those who are willing to invest the time energy and money the rewards are handsome.
Rick White | Director
Expense Reduction Analysts
8421 Dorchester Rd. Suite 109/318
North Charleston, SC 29420”
We welcome opinions from all points of view, and encourage you to keeping sharing your experiences and thoughts on ERA Expense Reduction Analysts.
We have received some very disturbing allegations from a group that has identified themselves as a disgruntled ERA franchisee in Australia. Armstrong Consulting has made serious allegations of fraud perpetrated against US franchisees and creditors.
We have posted the message we received along with supporting documents here:
ERA EXPENSE REDUCTION ANALYSTS Franchise Fraud Allegations
Link: http://www.unhappyfranchisee.com/era-expense-reduction-analysts-franchise-fraud-allegations/
Please share this link with ERA franchisees, former franchisees, with ERA corporate management, and all others involved with this company, and invite them to provide comments, opinions, rebuttals, clarifications or other responses, whether they agree or disagree with the allegations.
Thanks for your participation in this important discussion.
ADMIN
I am not sure who Mr Armstrong is. I have heard just bits and pieces of his action against Fred Marfleet and Expense Reduction Analysyts. I worked for the company for almost 12 months. I have several years in the franchise industry. I can sniff out a bad egg with the best . In the 12 months I worked for Michael Nicholas and spent time with Fred Marfleet. I watched them act with the highest of integrity. We followed the rules to the tee with every candidate and new franchisee. At no point was their any hank pinky or trying to do anything that cause distrust or trickery. If the judges in Austraila contact me and asked me to be a character witness for that entire organization I would be there. the toughest part of what we do in the franchise industry is to the best for people. Naturally if they fail it’s tough to blame the man in the mirror. I also feel that offering to pay for others to sue is just popostris. Move on.
Marty, you can read. What explanation can you give to the documents Armstrong published?
Highest integrity !!! You cannot be serious.
I’m sure when these documents are brought to the attention of the authorities you will change your mind and Marfleet, Nicholas and Co will have them to answer to as well as current and ex franchisees.
Hmm, ex ERA UK employee here, worked around the office.
In the UK something is wrong, how about the inland revenue check out the boat that was bought and went through the accounts.
John,
It has been reported to the relevant authorities and I’m sure there will be an investigation on both sides of the pond!!
It is only just beginning.
The threats by ERA’s Attorneys is typical of their style. Good on you for publishing the letter and your response and I hope it will go some way to uncovering the underhand and bully boy tactics they employ. I encourage others to add to the debate as you will not get a response from ERA management.
I have just come across this very interesting blog and as an ex-ERA UK franchisee I would like to add my views on this ‘business opportunity’:
IMO the entire Expense Reduction Analysts business is just one cleverly engineered scam. A huge proportion of ERA UK cost savings projects make no worthwhile savings whatsoever for the client. ERA conveniently ignores all these zero savings projects in its headline “20% savings” figure.
As for the poor franchisee, it’s a classic contractual trap. That’s why those that get ensnared are in denial and say ‘nice’ things about it. They have no alternative. These unfortunates have been forced to live a lie. It’s a form of enslavement that destroys relationships and ruins lives. Still, I’m sure that doesn’t stop the owners of ERA UK sleeping soundly at night on their big fat cash-stuffed mattresses.
I just warn anyone contemplating getting involved in this scam to ignore the glossy library shots on the ERA website, to ignore the declarations of the select group of ‘facade’ franchisees that ERA ‘maintains’ to say nice things, to ignore the claims that ERA will “invest in you because we are only successful when you are successful” etc. etc.
Because it is all complete bullsh*t.
If you want to give your money away please give it to a deserving charity like Cancer Research UK. And if you want to run you own business just do your own thing.
At all costs stay away from Expense Reduction Analysts UK. Period.
I so wish I had seen this blog previously, I may not be £80,000 down right now!!
If by commenting on here I save just one person from making the same mistake then I will have achieved something.
As has been written above, the ERA UK franchise model is cleverly engineered and legally protected to ensure a certain Mr Allison and his cronies enjoy a very comfortable existence directly funded by unsuspecting business people who, in very good faith and on the back of what in hindsight is well practiced misinformation, invest in what they are led to believe is prime, white collar business franchise opportunity; sadly, this is the last thing it is.
The business plan projections they provide, including a very impressive looking business planning model and tool that is pre-populated with very impressive figures that you can easily take along to a friendly a friendly bank’s Franchise Team who will happily lend you lend the funds, funds that you will soon find you will struggle to repay as the business plan numbers are extremely old and reflect a very good period, pre financial crash when a very few ERA franchisees did very well. These figures are not reflective of today’s market nor the real market opportunity, the ERA ‘old boy’s network’ has this completely stitched up and protected for their own financial well being and they don’t want any newbies diluting their business. Many of these are clearly evident from the Allison puppy dogs who help bolster his lifestyle who responded to the call sent from the Southampton Head Office on January 22 2014 by responding to this blog to defend the imposing truth that was descending upon the cash cow that is unsuspecting franchisees! It’s no coincidence that many of those who responded above are also very much involved in delivering the training sessions for new franchisees and are handsomely paid to do so, it’s no surprise they tell them how great it is!
It’s also no coincidence that the fake smiling individuals tasked with recruiting new ERA franchisees are the very same people that will provide you with a personal introduction to said friendly bank manager, another nice introductory fee anyone?!
As many have indicated before me, the ERA franchise model is verging on criminal, at least Robin Hood gave to the poor, unfortunately for many, the smarmy Rob Allison is far more akin to Dick Turpin.
Having the wonderful benefit of hindsight please, please, please take the very strong guidance from the many who have been there and lost significant amounts of money and do NOT risk one single penny in ERA, even that is too much of a risk. These were not gullible Jeremy Kyle viewers, these are seasoned business people, many of whom have held Board positions with big corporations, accountants and associated professionals all taking the information they’re provided with in good faith.
Unfortunately, I never had the benefit of such advice, I too took the information I was provided with in good faith as did many others around me, of the two rounds of entrants that I saw during my time at ERA 80% have since cut their losses and exited at great personal expense and the others are struggling to both make a living and pay the ongoing contribution to the Allison slush fund. It really is not worth it and the old adage ‘If it looks too good to be true then it probably’ is such a huge understatement in this case, it’s an outright rip off!
And to prove the point and has also been mentioned previously, the legal agreement they stitch you up with when you exit, again at even more cost, is effectively a total gagging order preventing any negativity being voiced, clear evidence from within of a calculated scam and the fear of the implications of the truth becoming known!