Does the Ledgers Franchise Disclosure Document include Promissory Notes as a schedule?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Received | Reference | Name |
|---|---|---|
| ITEM 1-ITEM 23 | Franchise Disclosure Document | |
| EXHIBIT A | State Addendum | |
| EXHIBIT B | Franchise Agreement | |
| Schedule 1 | Territory | |
| Schedule 2 | Minimum Requirements | |
| Schedule 3 | Automatic Bank Draft Authorization | |
| Schedule 4A | Telephone Number Assignment | |
| Schedule 4B | Lease Rider | |
| Schedule 5 | Promissory Notes | |
| Schedule 6 | Release | |
| EXHIBIT C | Financial Statements | |
| EXHIBIT D | State Administrators/Agents for Service of Process | |
| EXHIBIT E-1 | List of Franchisees | |
| EXHIBIT E-2 | List of Former Franchisees | |
| EXHIBIT F | Table of Contents – | |
| Operations Manual | ||
| EXHIBIT G | State Effective Dates | |
| EXHIBIT | Receipts | |
| H | ||
| Date: | ||
| (Do not leave blank) | Signature of Prospective Franchisee | |
| Print Name |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, Schedule 5 is indeed "Promissory Notes." This indicates that the FDD includes a standard form or template for promissory notes that may be used in connection with the franchise agreement.
For a prospective Ledgers franchisee, this means that there is a pre-approved structure for financing options that involve promissory notes. This could be relevant if the franchisee needs to borrow money from the franchisor or a third party to cover initial franchise fees, startup costs, or other expenses. The presence of a standardized promissory note can streamline the financing process and provide clarity on the terms and conditions of any loan agreement.
It is important for the franchisee to carefully review the terms of the promissory note, including the interest rate, repayment schedule, and any collateral requirements. They should also seek legal and financial advice to ensure that they fully understand their obligations under the note. While the FDD provides a template, the specific terms may be negotiable or subject to change, so due diligence is essential.