Is a Ledgers franchisee required to participate in a local or regional advertising cooperative?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Cooperative. You are not required to participate in a local or regional advertising cooperative.
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 the 2025 Ledgers Franchise Disclosure Document, franchisees are not required to participate in a local or regional advertising cooperative. This provides franchisees with flexibility in their advertising strategies. However, Ledgers does require franchisees to contribute 3% of their gross revenues to an Advertising Fund, which Ledgers manages.
Ledgers uses the Advertising Fund to advise franchisees on advertising and to conduct advertising themselves through various channels such as online, radio, television, direct mail, billboards, and print. While Ledgers may use local, regional, or national advertising, they are not required to spend any specific amount on advertising in the franchisee's particular area or territory.
For the fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees, and there was no balance in the fund. This may be an important consideration for prospective franchisees to discuss with Ledgers, to understand the future plans and potential benefits of the Advertising Fund. Franchisees should also note that unaudited financial statements of the Advertising Fund are available upon written request.