What form must be signed for a transfer of a Ledgers franchise to a Controlled Entity?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a "Controlled Entity" will not trigger the Right of First Refusal. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. Each such person of the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by us. We do not charge a transfer fee for this change.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, when transferring a franchise to a Controlled Entity, each officer, director, shareholder, member, partner, or similar person of the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers. A Controlled Entity is defined as an entity in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
Notably, Ledgers does not charge a transfer fee for transfers to a Controlled Entity. The franchisee must notify Ledgers in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest.
This process differs from a standard transfer, which requires the franchisee to sign the then-current transfer and release form and may involve a transfer fee. The Right of First Refusal is not triggered in a transfer to a Controlled Entity. This facilitates internal restructuring of the franchise ownership without incurring additional costs or facing external challenges, provided the franchisee maintains complete ownership and control.