What fees are included in the Ledgers franchise agreement or ARA?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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F. Control of Proceedings.
We have the sole right to control any administrative proceedings or litigation involving a trademark licensed by us to you.
G. Name and Likeness.
You give us permission to use your name and likeness in all forms and media for advertising, trade, and any other lawful purposes.
Fees
2.1. Initial Franchisee Fee
Upon execution of this Agreement, you will pay us a Franchise Fee of $15,000.00. The Franchise Fee is fully earned and nonrefundable when both Parties execute this Agreement.
2.2. Reserved
Reserved to preserve numbering.
2.3. Royalty Fee
You will pay us a continuing royalty fee in an amount equal to ten percent (10%) of Gross Revenue (the "Royalty Fee") for each month during the term of this Agreement, which will be paid to Franchisor by the tenth (10th) day of each month based on the Gross Revenue from the preceding month.
The term "Gross Revenues" is defined as all revenues that you derive or receive, directly or indirectly, from the operation of the Franchised Business, excluding only sales and use taxes.
2.4. Central Processing
If we provide central processing to you, then you will pay us the then-current rate charged by us for central processing.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees can expect to pay several fees as part of their agreement. The initial franchise fee is $15,000, which is due upon signing the agreement and is nonrefundable. In addition to the initial fee, franchisees must pay a continuing royalty fee of 10% of Gross Revenue each month. Gross Revenues are defined as all revenues derived directly or indirectly from the operation of the franchised business, excluding sales and use taxes.
Additional fees may apply depending on the services used and circumstances. If Ledgers provides central processing services, franchisees will pay the then-current rate for those services. Franchisees are also responsible for any applicable sales, excise, or gross receipts taxes on the initial franchise fee, royalties, and other goods or services. Furthermore, franchisees may incur fees for third-party software as specified in the Manual.
If a franchisee requests on-site training, Ledgers charges $500 per half day per person, plus travel and living expenses for the trainer. It is important for prospective franchisees to consider these potential additional costs when evaluating the overall financial investment required to operate a Ledgers franchise. These fees contribute to Ledgers' revenue streams, which also include franchise fees, area representative sales, and referral fees from vendors.