How can a Ledgers franchisee access the Advertising Fund's financial statements?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may not use Advertising Fees to solicit new franchise sales.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees contribute 3% of the previous month's gross revenues to the Advertising Fund monthly. While franchisor-owned outlets are not required to contribute, they may choose to do so. Ledgers administers this fund, which is not audited.
Ledgers provides access to the Advertising Fund's financial statements, which are unaudited, to franchisees upon written request. These statements offer a view into how the advertising fees are managed and spent. Any unspent fees from a fiscal year may be carried over and applied to the next fiscal year.
It is important to note that Ledgers is restricted from using Advertising Fees to solicit new franchise sales. The funds are used to advise franchisees in their advertising efforts or for Ledgers to conduct advertising themselves through various channels such as online platforms, radio, television, direct mail, billboards, and print media. This advertising may be local, regional, or national, and Ledgers is not obligated to spend any specific amount in a franchisee's particular area or territory. This arrangement allows franchisees to stay informed about the financial aspects of the advertising efforts supported by their contributions, while also understanding the scope and limitations of how these funds are utilized by Ledgers.