For a Ledgers franchise, what information must a franchisee furnish regarding ownership interests?
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 the 2025 Ledgers Franchise Disclosure Document, if a franchisee wishes to transfer their interest to a Controlled Entity, they must provide specific information to Ledgers. A "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
In the event of a transfer to a Controlled Entity, the franchisee must notify Ledgers in writing. This notification must include the name of the Controlled Entity, as well as the name and address of each officer, director, shareholder, member, partner, or similar person associated with the entity. Furthermore, the franchisee must disclose the respective ownership interest of each of these individuals.
Additionally, Ledgers requires that each person associated with the Controlled Entity sign the then-current amendment and release forms or Franchisee Agreement as deemed necessary by Ledgers. It is important to note that Ledgers does not charge a transfer fee for changes related to a transfer to a Controlled Entity.