What assurance does Ledgers provide regarding estimates and interpretations used in determining income tax liabilities?

According to Ledgers' 2025 Franchise Disclosure Document, Ledgers provides no assurance that the estimates and interpretations used to determine income tax liabilities will not be challenged by federal and state taxing authorities. The FDD states that actual results could significantly differ from the estimates and tax law interpretations used to determine current and deferred income tax benefits.

This means that as a Ledgers franchisee, you bear the risk that tax authorities may disagree with the tax positions taken by Ledgers, potentially leading to additional tax liabilities. This is a standard disclaimer, as tax laws are subject to interpretation and change, and taxing authorities may have different views than the company.

Prospective franchisees should be aware of this risk and factor it into their financial planning. It is advisable to consult with a tax professional to understand the potential implications and to ensure compliance with all applicable tax laws. While Ledgers uses its best judgment in estimating and interpreting tax laws, the ultimate responsibility for accurate tax reporting rests with the individual or entity being taxed.