What are the consequences if a Ledgers franchisee fails to use approved advertising materials as described in Item 8, considering the advertising fee they are required to pay in Item 6?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
rts to implement such cross-territorial protocols.
F. Other Brands
We or an affiliate may make sales within your Territory using trademarks different from the ones you will use under this Agreement. Currently, our affiliate ATAX LLC d/b/a ATAX offers franchise opportunities for franchisees to offer goods and services similar to those you will offer.
1.8. Advertising
A. Local Advertising and Promotions.
Your advertising and promotions will conform to the following requirements:
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- You will advertise and promote only in a manner that will reflect favorably on us.
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- You will participate in all promotional programs and that we create, offer or advertise.
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- Your advertising must comply with federal, state, and local laws.
B. Advertising Fee
You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
C. Fund.
Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may not use Advertising Fees to solicit new franchise sales.
1.9. Our Obligation to Conduct Advertising
We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising. We may use local, regional, or national advertising. We may produce advertising material in-house or though outside agencies. We are not required to spend any amount on advertising in the area or Territory where you will be located. We reserve the right to modify the marketing programs as we deem necessary to embrace new technologies.
A. Corporate Website.
We will develop and maintain a comprehensive website that contains your location's contact information.
B. Digital Marketing.
We may create, operate and promote websites, social media accounts (including but not limited to Facebook, Twitter, and Instagram), applications, digital advertising (including pay-per-click and display ads) or other means of digital marketing to promote the brand, Franchised Business, marks and franchise opportunities.
We have the sole right to control all aspects of any digital marketing including all digital marketing related to your Franchised Business.
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are required to use advertising material from Ledgers, a designated vendor, or receive written approval from Ledgers prior to using their own advertising materials. Item 8 specifies this requirement concerning advertising and marketing.
Item 22 further clarifies that a Ledgers franchisee's advertising and promotions must reflect favorably on Ledgers, and they must participate in all promotional programs that Ledgers creates, offers, or advertises. Additionally, all advertising must comply with federal, state, and local laws.
Item 22 also states that Ledgers franchisees will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly. However, the FDD does not explicitly state the consequences of failing to use approved advertising materials, despite the mandatory advertising fee. A prospective franchisee should seek clarification from Ledgers regarding the specific penalties or repercussions for non-compliance with the advertising material guidelines.