How can a Ledgers franchisee obtain financial statements of the Advertising Fund?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Fund. You agree to contribute 3% of your Gross Revenues into our Advertising Fund. 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.
In our last fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees and there is no balance in the Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees who contribute to the Advertising Fund can access the fund's financial statements. Specifically, Ledgers will provide unaudited financial statements of the Advertising Fund to franchisees upon receiving a written request.
It's worth noting that Ledgers franchisees contribute 3% of their gross revenues to the Advertising Fund. However, franchisor-owned outlets have the option, but are not required, to contribute to the fund. The FDD also states that for the fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any advertising fund fees, resulting in a zero balance.
While the financial statements are available, the FDD specifies that they are unaudited. This means they have not been reviewed by an independent accounting firm to verify their accuracy. Prospective franchisees should consider this when evaluating the financial performance and management of the Advertising Fund. Understanding how Ledgers manages and allocates these advertising funds is crucial for franchisees as it directly impacts marketing efforts and brand promotion.