What is the Ledgers franchisee's responsibility regarding the transfer fee?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
7.5. Transfer within an Entity
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.
7.7. Death or Incapacity
B. Transfer
We may terminate this Agreement unless, within sixty (60) days of your death or incapacity, your executor, personal representative or guardian:
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- pays all monies owed to us, including the transfer fee,
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a franchisee must pay a $5,000 transfer fee to Ledgers if they wish to transfer ownership of the rights under the Franchise Agreement. This fee applies when transferring a majority of the ownership in the agreement or in an entity holding the agreement.
However, there are exceptions to this fee. A transfer of interest within a franchisee's entity does not trigger the transfer fee if only the percentage ownership changes, rather than the identity of the owners. Additionally, there is no transfer fee for a transfer of interest to a Controlled Entity, which is defined as an entity in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest.
In the event of the franchisee's death or incapacity, their executor, personal representative, or guardian must pay all monies owed to Ledgers, including the transfer fee, if they seek a transfer of the franchisee's rights under the agreement. This transfer must be completed within six months of the death or incapacity. The transferee must also meet certain requirements, including completing initial training and entering into a new Franchise Agreement on the then-current form.