Where can I find the definition of Gross Revenues for a Ledgers franchise?

According to Ledgers's 2025 Franchise Disclosure Document, the definition of "Gross Revenues" can be found in Item 6, specifically in Note 1 regarding the Royalty Fee. Gross Revenues are defined as all revenues that a franchisee derives or receives, either directly or indirectly, from operating the Ledgers franchise. The only exclusion from this definition is sales and use taxes.

Understanding the definition of Gross Revenues is crucial for a prospective Ledgers franchisee because it directly impacts the calculation of the royalty fee, which is 10% of Gross Revenues. This means that a larger Gross Revenue figure will result in a higher royalty payment to Ledgers. Franchisees need to be aware of what constitutes revenue to accurately calculate and remit their royalty fees.

It is important to note that the definition explicitly excludes sales and use taxes. This means that franchisees do not pay a royalty on the portion of revenue collected to remit for sales and use taxes. Franchisees should carefully track their revenue streams and tax collection to ensure accurate royalty payments and compliance with the franchise agreement. Ledgers also requires franchisees to sign bank documents to permit them to debit the franchisee's bank account via ACH Electronic Transfer for all fees and payments due to them.