Does the additional funds estimate for a Ledgers franchise include royalties?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14. Additional Funds-3 months. The estimate of additional funds for the initial phase of your business is based on your staff salaries and operating expenses for the first three months of operation. The estimate of additional funds does not include an owner's salary or draw. We base this estimate upon the years of experience our management team has in the industry.
- 15. Does not include royalties, advertising fees, or interest expenses.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 20–23)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the estimate for additional funds does not include royalties. The additional funds estimate covers the initial phase of the business, specifically staff salaries and operating expenses for the first three months. This estimate also excludes the owner's salary or draw.
This means that prospective Ledgers franchisees need to budget separately for royalties, advertising fees, and interest expenses, as these are not accounted for in the initial additional funds estimate of $5,000 to $15,000. The additional funds are intended to cover the costs of getting the business up and running, such as employee compensation and day-to-day operational costs, but do not factor in payments to Ledgers for the ongoing use of its brand and systems.
Franchisees should carefully consider these exclusions when planning their initial investment and working capital needs. It is important to have a clear understanding of all the costs involved in operating a Ledgers franchise, including those not covered in the initial estimates, to ensure financial stability during the early months of operation. Consulting with a financial advisor to create a comprehensive budget is advisable.