What is the Ledgers franchisee's responsibility regarding other fees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Fee, royalties, and possibly other goods or services may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees to us.
2.6. Third Party Software Fees
You may pay fees to third party software providers, if any, as specified in the Manual.
2.7. On-Site Training Fee
If we provide on-site training to you at your request, then you will pay to us $500 per half day per person plus travel and living expenses for our trainer to travel to you.
2.8. Annual Convention
Either you or your Business Manager must attend the Annual Convention. While there will be no admission fee, you are responsible for any travel related expenditures such as lodging, meals and transportation. Additionally, we may require that you obtain materials for use in your business. You will be responsible for any materials charge.
2.9. Strategic Sourcing
Reserved.
2.10. Third Party Charges
If we incur third party charges on your behalf, you will reimburse us for any such charges.
2.11. Transfer Fee
You will pay to us a Transfer Fee of $5,000 if you wish to transfer ownership of the rights under this Agreement, or a majority of the ownership of this Agreement or in an entity holding this Agreement.
2.12. Administration
In the event of your death or incapacity, we are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing operation of your Franchised Business, plus 10% of Gross Revenues for the period in which we operate 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 the Client directly. We will charge you for the settlement and you will reimburse us within the next normal payment cycle.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, franchisees are responsible for several potential fees beyond the initial franchise fee and ongoing royalties. If Ledgers provides on-site training at the franchisee's request, the franchisee must pay Ledgers $500 per half day per person, plus cover the travel and living expenses for the trainer. Attendance at the annual convention is mandatory for either the franchisee or their Business Manager, and while there is no admission fee, the franchisee is responsible for all travel-related costs like lodging, meals, and transportation. Ledgers may also require franchisees to obtain materials for use in their business, and the franchisee will be responsible for any charges associated with these materials.
If Ledgers incurs third-party charges on behalf of a franchisee, the franchisee is obligated to reimburse Ledgers for those charges. A transfer fee of $5,000 is required if the franchisee wishes to transfer ownership of the franchise rights or a majority of the ownership in the entity holding the franchise. In the event of the franchisee's death or incapacity, Ledgers is entitled to reimbursement from the franchisee's estate for any reasonable expenses incurred in continuing the operation of the franchised business, plus 10% of gross revenues for the period in which Ledgers operates or assists in the operation.
If a client service complaint arises and Ledgers believes a refund is warranted, Ledgers may pay the client directly and then charge the franchisee for the settlement, which the franchisee must reimburse within the next normal payment cycle. Additionally, if an audit of the franchisee's business reveals an underreporting of gross revenues or underpayment to Ledgers by 5% or more, the franchisee will pay Ledgers' cost for performing the audit, plus a late fee of $50 per month on any late payment found through the audit. These additional fees can significantly impact a franchisee's profitability and should be carefully considered.