When is the Ledgers Audit Fee due?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment | Immediately upon conclusion of audit |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Audit Fee is due immediately upon the conclusion of the audit. The fee covers the cost of the audit itself. Additionally, Ledgers charges a late fee of $50 per month for any late payments of the Audit Fee.
This means that if Ledgers requires an audit of a franchisee's business, the franchisee will be responsible for covering the full cost of the audit. Franchisees need to be prepared to pay this fee promptly once the audit is completed to avoid incurring additional late fees.
Franchisors sometimes conduct audits to ensure compliance with the franchise agreement and to verify the accuracy of reported revenues, which are often used to calculate royalty fees. The franchisee should clarify with Ledgers the circumstances that would trigger an audit and get an estimate of potential audit costs to better prepare for this potential expense.