How will a Ledgers franchisee be notified of 'other fees' incurred?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Fee, royalties, and possibly other goods or services may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees to us.
2.6. Third Party Software Fees
You may pay fees to third party software providers, if any, as specified in the Manual.
2.7. On-Site Training Fee
If we provide on-site training to you at your request, then you will pay to us $500 per half day per person plus travel and living expenses for our trainer to travel to you.
2.8. Annual Convention
Either you or your Business Manager must attend the Annual Convention. While there will be no admission fee, you are responsible for any travel related expenditures such as lodging, meals and transportation. Additionally, we may require that you obtain materials for use in your business. You will be responsible for any materials charge.
2.9. Strategic Sourcing
Reserved.
2.10. Third Party Charges
If we incur third party charges on your behalf, you will reimburse us for any such charges.
2.11. Transfer Fee
You will pay to us a Transfer Fee of $5,000 if you wish to transfer ownership of the rights under this Agreement, or a majority of the ownership of this Agreement or in an entity holding this Agreement.
2.12. Administration
In the event of your death or incapacity, we are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing operation of your Franchised Business, plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business.
2.13. Client Refunds
If you do not resolve a Client service complaint and we believe a reasonable basis exists for a refund to the Client all or a portion of the Client's fees, we may pay the Client directly. We
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, there are several circumstances in which a franchisee may incur additional fees.
If Ledgers incurs third-party charges on behalf of a franchisee, the franchisee is responsible for reimbursing Ledgers for those charges. Additionally, if a franchisee does not resolve a client complaint and Ledgers believes a refund is appropriate, Ledgers may pay the client directly and then charge the franchisee for the settlement, with reimbursement due within the next normal payment cycle.
Furthermore, Ledgers may conduct an audit of a franchisee's business. If the audit reveals an underreporting of gross revenues or underpayment to Ledgers by 5% or more, the franchisee will be responsible for covering the cost of the audit, along with a late fee of $50 per month on any late payment identified during the audit. If a franchisee requests on-site training, they will pay Ledgers $500 per half day per person, plus travel and living expenses for the trainer.
While the FDD outlines the conditions under which these fees may be charged, it does not explicitly state how Ledgers will notify a franchisee of these incurred fees. It is important for a prospective franchisee to clarify with Ledgers the exact notification process for these additional fees, including the method of communication, the timing of notification, and the documentation provided to support the charges.