How is the Assistance Fee in the event of death or incapacity calculated for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Assistance Fee in the event of death or incapacity | Our reasonable expenses plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business. | At time of expense | We are entitled to this fee if we must operate your franchise due to your death or incapacity. |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if the franchisor, Ledgers, must step in to operate or assist in the operation of a franchise due to the franchisee's death or incapacity, Ledgers will charge an Assistance Fee. This fee is calculated as Ledgers' reasonable expenses incurred during the period they operate or assist in the operation of the franchised business, plus 10% of the Gross Revenues generated during that same period. This fee is due at the time the expense is incurred.
For a prospective Ledgers franchisee, this means that in the unfortunate event of death or incapacity, the franchisee's estate or the franchisee themselves will be responsible for covering Ledgers' costs. These costs include both the reasonable expenses Ledgers incurs to run the business and 10% of the Gross Revenues generated while Ledgers is managing the franchise.
This type of fee is not uncommon in franchising, as it compensates the franchisor for the added responsibility and resources required to temporarily manage a franchise location. It is important for prospective franchisees to understand this potential expense and consider it when making financial plans for their business and estate. Franchisees should clarify with Ledgers what constitutes "reasonable expenses" to better anticipate the potential costs associated with this fee.