Is a Ledgers franchisee required to pay a transfer fee for a transfer of interest within an entity?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A transfer of interest within a Franchisee entity will not trigger the Right of First Refusal if only the percentage ownership changes rather than the identity of the owners. At the time of the desired transfer of interest within an entity, you must notify us in writing of 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 will 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, a franchisee is not required to pay a transfer fee for a transfer of interest within an entity under specific conditions. If the transfer only involves a change in the percentage of ownership and not the identity of the owners, then no transfer fee is charged.
However, Ledgers requires written notification of the transfer, including the names and addresses of all officers, directors, shareholders, members, partners, or similar individuals, along with their respective ownership interests. Additionally, each person within the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers.
This policy benefits franchisees by allowing internal restructuring of ownership without incurring additional fees, provided they comply with the notification and documentation requirements set by Ledgers. This can be particularly useful for franchisees looking to bring in new investors or adjust ownership percentages among existing partners without facing extra costs.