Is a Ledgers franchisee required to purchase bookkeeping and payroll services from Ledgers to sell to clients?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Bookkeeping, Payroll, and Business Support Services. You must purchase our bookkeeping and payroll services that you will sell to your clients unless you provide such services yourself. You must purchase our business support services that we render on your behalf to your clients.
We are an approved supplier of advertising material and bookkeeping and payroll services that you will sell to your clients, but not the only approved supplier of such items. We are an approved supplier, and the only approved supplier, of business support services (central processing and website services) that we render on your behalf to your clients.
We estimate that required purchases described above will be approximately 15-20% of all purchases and leases by you of goods and services to establish a franchise and approximately 10- 15% of your operating costs.
We currently do not receive payments from suppliers as a result of purchases by our franchisees; however, we may do so in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees must purchase bookkeeping and payroll services from Ledgers to sell to their clients, unless they provide such services themselves. Ledgers franchisees must also purchase business support services from Ledgers that Ledgers renders on the franchisee's behalf to their clients. Ledgers is an approved supplier of advertising material and bookkeeping and payroll services that franchisees will sell to their clients, but not the only approved supplier of such items. Ledgers is the only approved supplier of business support services (central processing and website services) that it renders on the franchisee's behalf to their clients.
This means that if a Ledgers franchisee chooses to offer bookkeeping and payroll services, they have the option to provide these services directly rather than purchasing them from Ledgers. However, business support services must be purchased exclusively from Ledgers. This requirement ensures consistency and quality control in certain core service offerings.
It is important to note that Ledgers estimates that required purchases will be approximately 15-20% of all purchases and leases by the franchisee of goods and services to establish a franchise and approximately 10-15% of their operating costs. While Ledgers does not currently receive payments from suppliers as a result of purchases by franchisees, they reserve the right to do so in the future. A prospective franchisee should consider these required purchases and potential future revenue streams for Ledgers when evaluating the financial aspects of the franchise.