Who determines the amount of the Credit Card Processing Fee for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1 and 2) | The Royalty Fee is 10% of Gross Revenues | See Note 1 for a definition of Gross Revenues. | |
| Advertising Fee | 3% of the previous month’s Gross Revenues | Monthly | You agree to pay this fee to us to support our advertising program. |
| Credit Card Processing Fee | The actual amount charged by third party credit card processor The actual amount charged by third party credit card processor | As incurred |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Credit Card Processing Fee is determined by a third-party credit card processor. The franchisee is responsible for paying the actual amount charged by this third party. This fee is incurred as services are used.
This means that Ledgers franchisees do not have control over the amount of the credit card processing fees. These fees will vary depending on the processor's rates and the volume of credit card transactions processed by the franchise. Franchisees should research and compare different credit card processors to potentially minimize these costs.
Credit card processing fees are a common expense for businesses, including franchises, that accept credit card payments. These fees typically cover the costs associated with processing the transactions, such as interchange fees, assessment fees, and processor markups. It is important for prospective Ledgers franchisees to factor in these fees when projecting their operating expenses.