Does Ledgers designate vendors from whom franchisees must purchase supplies and inventory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We typically respond to any request submitted to our operations department within five days.
Supplies/Inventory. You must purchase supplies and inventory pursuant to our specifications, which may include vendor designations.
Technology. You must use the tax preparation software(s), technologies, and website services as we may specify or designate.
Whether We or Our Affiliates are Approved Suppliers:
We are an approved supplier of advertising material and bookkeeping and payroll services that you will sell to your clients, but not the only approved supplier of such items. We are an approved supplier, and the only approved supplier, of business support services (central processing and website services) that we render on your behalf to your clients.
Our affiliates are not approved suppliers of any required purchases of products or services.
Officer Interests in Suppliers:
John Hewitt owns an interest in us; however, none of our officers own an interest in any other supplier
Alternative Suppliers:
We do not maintain written criteria for approving suppliers and thus these criteria are not available to you or your proposed supplier. If you wish to purchase products or services from a nonapproved vendor; you must submit the vendor for approval. We charge $100/hour plus our costs to evaluate an alternative supplier. Our right to approve or disapprove will be done in a reasonable manner within 30 days of our receipt of your request.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees must purchase supplies and inventory according to Ledgers' specifications, which may include vendor designations. Ledgers estimates that these required purchases will account for approximately 15-20% of all purchases and leases to establish the franchise and about 10-15% of operating costs.
Ledgers does not currently receive payments from suppliers based on franchisee purchases, but they reserve the right to do so in the future. While Ledgers negotiates purchase arrangements with suppliers, including preferred pricing, for the benefit of franchisees, they do not offer material benefits for using a particular supplier, except that compliance with supplier standards is required for franchise renewal.
Ledgers does not maintain written criteria for approving alternative suppliers. If a franchisee wishes to use a non-approved vendor, they must submit the vendor for approval, incurring a cost of $100 per hour plus Ledgers' costs for the evaluation. Ledgers aims to make a decision within 30 days of receiving the request and may limit the number of approved vendors for specific products if it is in the best interest of the network. Ledgers publishes a vendor directory, product specifications, and standards in its Operations Manual and through informational bulletins.