Where in the Franchise Agreement for Ledgers must the ownership information be provided?
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 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, when transferring interest to a Controlled Entity, the franchisee must notify Ledgers in writing. This notification must include the name of the Controlled Entity, the name and address of each officer, director, shareholder, member, partner, or similar person, and their respective ownership interest.
A "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest. This type of transfer does not trigger the Right of First Refusal, which typically allows the franchisor to buy back the franchise before it's sold to a third party. Each person associated with the Controlled Entity must also sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers.
Ledgers does not charge a transfer fee for changes related to Controlled Entities. This process ensures that Ledgers maintains transparency regarding the ownership and management of its franchises, even when ownership is transferred within entities controlled by the original franchisee. This requirement helps Ledgers to ensure compliance and maintain the integrity of its franchise system.