What expenses are NOT included in the 'Additional Funds' estimate for a Ledgers franchise?

According to Ledgers's 2025 Franchise Disclosure Document, the 'Additional Funds' estimate does not include certain expenses. Specifically, the estimate for the initial phase of the business, which covers staff salaries and operating expenses for the first three months, does not account for an owner's salary or draw. Additionally, the estimate excludes royalties, advertising fees, and interest expenses.

For a prospective Ledgers franchisee, this means that the $5,000 to $15,000 allocated for 'Additional Funds' is intended to cover operational costs and employee compensation during the initial months. Franchisees must budget separately for their own income, as the estimate does not include any compensation for the owner. Furthermore, franchisees should be aware that ongoing expenses such as royalty payments, advertising contributions, and any interest on loans are not factored into this initial estimate and will require additional financial planning.

It is typical in franchising for the initial investment estimates to exclude owner's salary, as this can vary greatly depending on the franchisee's desired income and the business's performance. However, it is crucial for prospective franchisees to carefully consider these excluded expenses when projecting their overall financial needs and ensuring they have sufficient capital to sustain themselves and the business during the startup phase. Understanding these exclusions allows for more accurate financial forecasting and reduces the risk of undercapitalization.