factual
Who must approve the transfer of a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1 and 2) | The Royalty Fee is 10% of Gross Revenues | See Note 1 for a definition of Gross Revenues. | |
| Advertising Fee | 3% of the previous month’s Gross Revenues | Monthly | You agree to pay this fee to us to support our advertising program. |
| Credit Card Processing Fee | The actual amount charged by third party credit card processor The actual amount charged by third party credit card processor | As incurred | |
| Central Processing Services Fee | Then current rate based on the service requested (up to 40% of our-then current Recommended Fee (Note 3) | As incurred | You agree to pay this fee to us for any central processing services we provide to your clients on your behalf. |
| Insufficient | $50 per transaction $50 per transaction | As incurred | |
| Funds Fee | |||
| Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment | Immediately upon conclusion of audit | |
| Transfer Fee | $5,000 for a transfer of the franchise or a majority interest in it. | Due before transferring | We must approve the transfer. |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers must approve the transfer of a franchise. If a franchisee wants to transfer their franchise or a majority interest in it, they must first obtain approval from Ledgers.
In order to transfer a Ledgers franchise, the franchisee will need to pay a $5,000 transfer fee. This fee is due before the transfer takes place.
Franchise agreements typically contain clauses requiring franchisor approval for transfers to ensure that the new franchisee meets the franchisor's standards and is capable of operating the business successfully. This protects the brand and the interests of other franchisees within the Ledgers system.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.