When is the Assistance Fee in the event of death or incapacity due 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, the Assistance Fee in the event of death or incapacity is due "at time of expense." This fee covers Ledgers' reasonable expenses plus 10% of Gross Revenues for the period in which they operate or assist in the operation of the Franchised Business.
This fee is charged if Ledgers must step in to operate the franchise due to the franchisee's death or incapacity. The "reasonable expenses" component is not defined in the excerpt, but would likely include costs directly related to managing the business during the interim period. The additional 10% of Gross Revenues suggests Ledgers will also profit from this arrangement, in addition to covering their expenses.
For a prospective franchisee, this means that in the unfortunate event of death or incapacity, their estate or they themselves will be responsible for covering Ledgers' expenses and a percentage of the business's revenue. It would be prudent for a prospective franchisee to clarify with Ledgers what constitutes "reasonable expenses" to better understand the potential financial impact. Franchisees should also consider how their business will be managed in the event of death or incapacity and whether the assistance fee would be applicable.