Is it currently mandatory for Ledgers franchisees to use Central Processing Services?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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, it is not currently mandatory for franchisees to utilize Ledgers' Central Processing Services. However, Ledgers retains the right to mandate the use of these services in the future. These services include personal and business tax preparation, bookkeeping, and business planning, offered directly to clients on the franchisee's behalf using a joint engagement form.
Ledgers publishes an annual price list for these services, which may vary over time. Each service has a 'Recommended Fee' for the franchisee to charge clients and a 'Central Processing Services Fee,' which is what Ledgers charges for providing the service. The Central Processing Services Fee is up to 40% of Ledgers' then-current Recommended Fee for the service requested.
While not mandatory now, the potential future requirement to use these services could impact a franchisee's operational costs and revenue structure. Franchisees should consider the potential financial implications and service quality aspects of these centralized services when evaluating the franchise opportunity. It would be prudent for prospective franchisees to discuss with Ledgers the circumstances under which the use of Central Processing Services might become mandatory and how this could affect their business model.