What is the deadline for a Ledgers franchisee to notify Ledgers of a bank account change?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 2: Before you may open for business, you must sign and deliver to us all bank documents needed to permit us to debit your bank account via ACH Electronic Transfer for all fees and payments due to us. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic
Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Schedule 2 to the Franchise Agreement.
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee must notify Ledgers within one day if they change their bank account or transfer it to a different bank. This notification is crucial because Ledgers requires franchisees to execute an Automatic Bank Draft Authorization to pay most fees via ACH electronic funds transfer.
In addition to notifying Ledgers within one day, the franchisee must also sign and deliver new bank documents to Ledgers and the bank within three days to permit Ledgers to continue debiting the account. This ensures that Ledgers can continue to collect fees and payments due from the franchisee without interruption.
This requirement is in place to ensure timely payments to Ledgers and to avoid any disruptions in the fee collection process. Franchisees should be aware of this requirement and ensure they comply with the notification deadlines to avoid any potential penalties or issues with their franchise agreement.