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What is the Ledgers franchisee's responsibility regarding the audit fee?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

ate 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 th

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the franchisee is responsible for covering the costs associated with any audit of their franchise business that Ledgers conducts. In addition to covering the cost of the audit itself, Ledgers will charge a $50 late fee per month on any late payments discovered during the audit if the audit reveals that the franchisee has underreported gross revenues or underpaid Ledgers by 5% or more.

This means that if Ledgers suspects a franchisee is not accurately reporting their earnings or payments, they can conduct a full audit at the franchisee's expense. The audit fee could potentially be a significant, unexpected cost for the franchisee.

It is important for prospective Ledgers franchisees to maintain accurate financial records and ensure timely payments to avoid triggering an audit and incurring these additional fees. Franchisees should clarify with Ledgers the specific circumstances that would trigger an audit and the estimated cost of such an audit to better prepare for this potential expense.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.