What are all the fees Ledgers franchisees must pay, as detailed in Item 5 and Item 6?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
d in this Item.
ITEM 5 INITIAL FEES
You must pay us an initial fee (the "Initial Franchise Fee) for the right to open and operate a Ledgers Franchised Business. The Initial Franchise Fee is $15,000 until October 31, 2025. Thereafter, the Initial Franchise Fee will be increased to $35,000.
You must submit the Initial Franchise Fee to us before attending Initial Training, usually when the Franchise Agreement is signed. We will refund the Initial Franchise Fee paid by you if we do not approve your application or if you do not pass our Initial Training in accordance with our thencurrent passing standards for training provided that you return to us all materials which we distributed to you during training.
We offer a 10% discount to all active-duty service members and veterans. We may offer special incentive programs from time to time as part of national or regional development efforts and we reserve the right to offer, modify, or withdraw any incentive program without any notice to you. We disclose financing terms in Item 10.
Except as described in this Item 5, the Initial Fees are uniformly imposed and non-refundable.
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ITEM 6 OTHER FEES
| 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 | | | Central Processing Services Fee | Then current rate based on the service requested (up to 40% of our-then current Recommended Fee (Note 3) | As incurred | You agree to pay this fee to us for any central processing services we provide to your clients on your behalf. | | | | | | | | | | | | Insufficient | $50 per transaction $50 per transaction | As incurred | | | Funds Fee | | | | | Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment | Immediately upon conclusion of audit | | | Transfer Fee | $5,000 for a transfer of the franchise or a majority interest in it. | Due before transferring | We must approve the transfer. | | Interest and | Actual amount | As incurred | | | Penalties | incurred Actual amount incurred | | | | Client Refunds | The amount of any fee we refund to a client | As invoiced | | | Fee | Amount | Due Date | Remarks | | Assistance Fee in the event of death or incapacity | Our reasonable expenses plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business. | At time of expense | We are entitled to this fee if we must operate your franchise due to your death or incapacity. | | On-Site Training | $500 per half day per person plus travel expenses | As incurred | We are entitled to this fee if we provide on-site training at your request at your Franchised Business. | | Sales, Excise, or Gross Receipts tax | Actual amount of tax paid | At time of payment of fees to us which are subject to any tax | If required by the state or locality in which your franchise is located, the initial franchise fee, advertising fee, and possibly other fees will be subject to sales or gross receipts tax. | | Third party charges that we incur on your behalf | Actual amount of charge | At time of expense | If we incur third party charges on your behalf, you agree to reimburse us for any such charges. | | Late Fee | Lesser of 1.5% per month or the highest rate allowable by law of the state where franchised is located | As incurred. | Applies to amounts owed to us that are five (5) or more days past due. | | Indemnity | Actual loss sustained | At time of expense | You must indemnify us from any loss caused by your operation of the Franchised Business. | | Attorney Fees and Costs | Actual amount incurred | At time of expense | If we are the substantially prevailing party in litigation with you, or you bring a claim against an Area Representative, you agree to pay our costs and attorney fees. | *Except where otherwise specified, we uniformly impose and collect all the fees in this table, you pay them to us, and we do not refund them.
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees must pay several fees, as detailed in Item 5 and Item 6. The initial franchise fee is $15,000 until October 31, 2025, after which it increases to $35,000. This fee is generally non-refundable, although a refund is possible if Ledgers does not approve the application or if the franchisee fails initial training, provided all training materials are returned. Active-duty service members and veterans receive a 10% discount on the initial franchise fee.
In addition to the initial franchise fee, Ledgers franchisees are subject to other recurring and occasional fees. The royalty fee is 10% of gross revenues. Franchisees also pay an advertising fee of 3% of the previous month’s gross revenues. Additional fees include credit card processing fees (the actual amount charged by the third-party processor), and a central processing services fee, which can be up to 40% of Ledgers' then-current recommended fee for services provided to the franchisee's clients.
Further fees may arise for Ledgers franchisees. These include a $50 insufficient funds fee per transaction, audit fees (cost of the audit plus a $50 per month late fee on any late payment), and a $5,000 transfer fee for transferring the franchise. Franchisees may also incur interest and penalties, client refunds, and an assistance fee in the event of death or incapacity (Ledgers' reasonable expenses plus 10% of gross revenues). On-site training costs $500 per half day per person plus travel expenses. Franchisees are also responsible for sales, excise, or gross receipts tax, third-party charges incurred on their behalf, late fees (lesser of 1.5% per month or the highest rate allowable by law), indemnity for losses caused by their operation, and attorney fees and costs if Ledgers substantially prevails in litigation.
It is important for prospective Ledgers franchisees to understand the full scope of these fees, as they can significantly impact profitability. Franchisees should carefully review Item 6 of the FDD and discuss any questions or concerns with Ledgers before signing the Franchise Agreement. Understanding these fees and planning for them is a crucial part of assessing the financial viability of a Ledgers franchise.