Is the Ledgers Advertising Fund audited?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund. You agree to contribute 3% of your Gross Revenues into our Advertising Fund. Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request.
In our last fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees and there is no balance in the Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Advertising Fund is not audited. Ledgers franchisees are required to contribute 3% of their gross revenues to the Advertising Fund, while franchisor-owned outlets may contribute but are not required to do so.
Ledgers will provide franchisees with unaudited financial statements of the Advertising Fund upon written request. As of the last fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees, resulting in a zero balance.
The fact that the fund is not audited means there is less independent oversight of how Ledgers spends the advertising fees. While Ledgers is obligated to provide unaudited financial statements, franchisees may want to consider the implications of the fund not undergoing a formal audit by an independent accounting firm. Franchisees should consider requesting and reviewing these unaudited statements to understand how the fund is managed, especially if the fund becomes more active in the future.