What is the Ledgers franchisee's responsibility regarding the Royalty Report?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recurring fees: You are responsible for providing a monthly Royalty Report to us. The Royalty Report is due on the 10th day following the end of each month. The Royalty Report is used to calculate your Royalty Payments owed to us. Your Royalty Payments are due on the same date. You will execute an Automatic Bank Draft Authorization on a form substantially similar to that in Schedule 2. We will draft your Royalty Payment on the 10th day of each month or as soon thereafter as they are processed by us.
Other fees: We will provide an invoice to you for other fees incurred. Payment is due upon receipt. We will draft your account on the same date, or as soon thereafter as the draft is processed by us. We reserve the right to deduct monies that you owe to us from any monies that we pay to you.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are responsible for providing a monthly Royalty Report to Ledgers. This report is due on the 10th day following the end of each month and is used to calculate the royalty payments owed to Ledgers. The royalty payments are also due on the same date as the report.
To ensure timely payments, Ledgers requires franchisees to execute an Automatic Bank Draft Authorization, allowing Ledgers to draft the royalty payments from the franchisee's account on the 10th of each month, or as soon as possible thereafter. This automatic drafting system is a common practice in franchising, designed to streamline the payment process and minimize late payments.
In addition to royalty payments, Ledgers will provide invoices to franchisees for other fees incurred, which are due upon receipt. Ledgers also reserves the right to deduct any monies owed by the franchisee from any payments that Ledgers makes to the franchisee. This clause protects Ledgers' financial interests and ensures that all outstanding debts are settled promptly.