What form must be signed for a transfer of interest within a Ledgers franchisee entity?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A transfer of interest within a Franchisee entity will not trigger the Right of First Refusal if only the percentage ownership changes rather than the identity of the owners. At the time of the desired transfer of interest within an entity, you must notify us in writing of 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 will 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's 2025 Franchise Disclosure Document, a transfer of interest within a franchisee entity that only changes the percentage of ownership does not trigger the Right of First Refusal. However, Ledgers requires written notification including the name and address of each officer, director, shareholder, member, partner, or similar person, along with their ownership interest.
Each person within the franchisee's entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers. This ensures that all individuals associated with the entity acknowledge and agree to the terms of the franchise agreement.
Notably, Ledgers does not charge a transfer fee for changes that only involve percentage of ownership. This can be a significant benefit for franchisees looking to adjust ownership percentages within their existing entity without incurring additional costs.