How are Ledgers Area Representatives compensated for their services?

According to Ledgers' 2025 Franchise Disclosure Document, Area Representatives are compensated through a portion of the initial franchise fee and royalties paid by the unit franchisee. Specifically, Ledgers offers an Area Representative franchise program where these representatives recruit and support unit franchisees. In return for these services, the Area Representatives receive a share of both the initial franchise fee and the ongoing royalty payments generated by the unit franchisees they support.

This compensation model aligns the Area Representative's financial interests with the success of the unit franchisees they recruit and support. By tying compensation to both the initial franchise fee and ongoing royalties, Ledgers incentivizes Area Representatives to not only recruit new franchisees but also to provide ongoing support that helps those franchisees thrive. This structure is common in franchise systems that utilize area representatives or similar roles, as it fosters a collaborative relationship between the franchisor, area representative, and unit franchisee.

As of December 31, 2024, Ledgers had one Area Representative outlet. Prospective Area Representatives should carefully review the specific terms of the Area Representative Franchise Agreement to fully understand the compensation structure, including the exact percentages of the initial franchise fee and royalties they will receive, as well as any conditions or limitations that may apply.