Does Ledgers currently derive revenue from required purchases or leases by franchisees?

According to Ledgers's 2025 Franchise Disclosure Document, Ledgers does not currently derive revenue from required purchases or leases by franchisees. However, Ledgers reserves the right to do so in the future. The FDD states that in the last fiscal year, which ended December 31, 2024, neither Ledgers nor its affiliates earned revenue or other material consideration from required purchases or leases by franchisees.

This means that as of the end of 2024, franchisees were not directly contributing to Ledgers's revenue through mandatory purchases or leases. However, prospective franchisees should be aware that this policy could change, and Ledgers may decide to implement such revenue streams in the future.

While Ledgers does not currently receive revenue from required purchases, franchisees are still required to make certain purchases to establish and operate their franchise. The FDD estimates that required purchases will be approximately 15-20% of all purchases and leases to establish the franchise and approximately 10-15% of operating costs. These required purchases include items such as advertising materials, bookkeeping and payroll services (unless the franchisee provides these services themselves), business support services, computer hardware and software, and insurance coverage. Franchisees must also obtain an EFIN and PTIN from the IRS. Ledgers is an approved supplier of advertising material and bookkeeping and payroll services, but not the only approved supplier. Ledgers is the only approved supplier of business support services.

Prospective franchisees should inquire about the specific items that constitute these required purchases and leases, as well as the potential financial impact if Ledgers decides to derive revenue from these purchases in the future. Understanding the details of these requirements is crucial for assessing the overall cost and profitability of a Ledgers franchise.