Is Ledgers the only approved supplier of bookkeeping and payroll services that franchisees will sell to their clients?

According to Ledgers's 2025 Franchise Disclosure Document, Ledgers is an approved supplier of bookkeeping and payroll services that franchisees will sell to their clients, but it is not the only approved supplier. Franchisees have the option to source these services from other approved vendors as well. However, Ledgers is the sole approved supplier of business support services, specifically central processing and website services, which it provides on behalf of franchisees to their clients.

This distinction is important for prospective franchisees to understand. While they have some flexibility in choosing suppliers for bookkeeping and payroll services, they are required to use Ledgers for business support services. This could impact a franchisee's operational costs and service offerings, as they must factor in the cost of Ledgers's business support services.

Ledgers does not maintain written criteria for approving alternative suppliers. If a franchisee wishes to use a non-approved vendor, they must submit the vendor for approval, which costs $100 per hour plus any additional costs Ledgers incurs to evaluate the supplier. Ledgers has 30 days to make a decision regarding the vendor approval and will inform the franchisee of their decision via email. Ledgers also reserves the right to limit the number of approved vendors for specific products if it is in the best interest of the network.

It is also worth noting that while Ledgers does not currently receive payments from suppliers based on franchisee purchases, they reserve the right to do so in the future. Required purchases from approved suppliers are estimated to be 15-20% of the initial costs to establish the franchise and 10-15% of ongoing operating costs. Franchisees should consider these factors when evaluating the financial aspects of investing in a Ledgers franchise.