Did the Ledgers franchise agreement with a member of management require an initial franchise license fee?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
------------| | Accounts receivable | | | | | Loyalty LLC | $ 610,180 | $1,209,516 | $1,300,815 | | Loyalty Franchising | 15,000 | 15,000 | 15,000 | | The Inspection Boys | 5,000 | 5,000 | 5,000 | | | $ 630,180 | $1,229,516 | $1,320,815 | | Accounts payable | | | | | Hewitt Construction | $ 7,000 | $ 7,000 | $ - | | Zoomin Groomin | 519,000 | 436,000 | 150,000 | | ATAX, LLC | 326,180 | 294,180 | 155,000 | | | $ 852,
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, a franchise agreement in 2024 with a member of management did not require an initial franchise license fee. However, the agreement did require monthly royalty and marketing fees.
For the year ending December 31, 2024, the total royalty revenue related to this franchise agreement was $8,943. The total outstanding royalty receivables as of December 31, 2024, amounted to $560.
This related-party transaction provides insight into the financial relationships Ledgers may have with its management and how franchise agreements can be structured differently in such cases. Prospective franchisees should inquire about the standard terms and conditions applicable to regular franchisees versus those extended to management or related parties to fully understand the financial obligations and benefits associated with a Ledgers franchise.