What is the calculation for the Assistance Fee in the event of death or incapacity for a Ledgers franchise?

According to Ledgers's 2025 Franchise Disclosure Document, if the franchisor must operate or assist in the operation of a franchise due to the franchisee's death or incapacity, Ledgers charges an Assistance Fee. This fee is calculated as the sum of Ledgers' reasonable expenses incurred during the period they operate or assist in operating the franchise, plus 10% of the Gross Revenues generated during that same period. This fee is due at the time the expenses are 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 (if incapacitated but still managing affairs) will be responsible for paying this Assistance Fee to Ledgers. The 'reasonable expenses' component is somewhat vague, so it would be prudent to clarify with Ledgers what types of expenses this might include and how they are documented.

It is important to note that the Assistance Fee includes a percentage of Gross Revenues, which means that Ledgers benefits directly from the continued operation of the franchise during this period. This could incentivize Ledgers to maintain the business effectively, but it also means the franchisee (or their estate) is still responsible for sharing revenue with the franchisor even without their direct involvement. Franchisees should consider this potential cost when evaluating the overall financial implications of the Ledgers franchise agreement.