What is the 'Central Processing Services Fee' charged by Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks | |---|---|---|---| | Central Processing Services Fee | Then current rate based on the service requested (up to 40% of our-then current Recommended Fee (Note 3) | As incurred | You agree to pay this fee to us for any central processing services we provide to your clients on your behalf. | | | | | | | | | | | | | | | | Note 3: Ledgers' Central Processing Services is a centralized support system offered by us to enhance efficiency and service quality across the franchise network. Through this program, we offer to provide certain personal and business tax preparation, bookkeeping, and business planning services directly to clients on your behalf utilizing a joint engagement form. We publish an annual price list for the then-current services offered by us, which may vary from time to time. Each service offered by us includes a recommended fee for you to charge your clients (the "Recommended Fee") and includes the fee we charge for the services (the "Central Processing Services Fee"). We do not currently require you to utilize our Central Processing Services, but we reserve the right to do so.
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the Central Processing Services Fee is based on the current rate for the service requested and can be up to 40% of Ledgers's then-current Recommended Fee. This fee is incurred when Ledgers provides central processing services to the franchisee's clients on their behalf.
Ledgers offers a centralized support system to enhance efficiency and service quality across its franchise network. Through this system, Ledgers offers to provide personal and business tax preparation, bookkeeping, and business planning services directly to clients using a joint engagement form. Ledgers publishes an annual price list for the services offered, which may vary. Each service includes a Recommended Fee for the franchisee to charge clients and the Central Processing Services Fee, which is what Ledgers charges for providing the services.
While Ledgers does not currently require franchisees to use their Central Processing Services, they reserve the right to do so in the future. This means that a franchisee may be required to utilize these services at some point during the franchise agreement. The franchisee is responsible for paying the Central Processing Services Fee to Ledgers for any services provided to their clients on their behalf. This fee structure allows Ledgers to generate revenue from services provided directly to the franchisee's clients, while also potentially increasing the franchisee's service capabilities.