When is the Central Processing Services Fee due for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1 and 2) | The Royalty Fee is 10% of Gross Revenues | See Note 1 for a definition of Gross Revenues. | |
| Advertising Fee | 3% of the previous month’s Gross Revenues | Monthly | You agree to pay this fee to us to support our advertising program. |
| Credit Card Processing Fee | The actual amount charged by third party credit card processor The actual amount charged by third party credit card processor | As incurred | |
| 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. |
| Insufficient | $50 per transaction $50 per transaction | As incurred | |
| Funds Fee |
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 due 'as incurred.' This fee is paid by the franchisee to Ledgers for any central processing services that Ledgers provides to the franchisee's clients on their behalf.
The Central Processing Services Fee is based on the current rate for the service requested and can be up to 40% of Ledgers' then-current Recommended Fee. Ledgers offers a centralized support system to enhance efficiency and service quality across the franchise network. These services include personal and business tax preparation, bookkeeping, and business planning services provided directly to clients using a joint engagement form.
While Ledgers does not currently require franchisees to utilize their Central Processing Services, they reserve the right to mandate it in the future. Franchisees should be aware of this potential change, as it could impact their operational costs and service delivery methods. Understanding the pricing structure and the scope of services covered under the Central Processing Services is crucial for budgeting and financial planning.