What happens to unspent Advertising Fees for Ledgers at the end of the fiscal year?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
scal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees and there is no balance in the Advertising Fund.
If not all Advertising Fees are spent in the fiscal year in which they accrue, we will carry over those fees and apply them to the next fiscal year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, any Advertising Fees that are not spent during a fiscal year will be carried over and applied to the subsequent fiscal year. This means that if the Advertising Fund has a surplus at the end of the year, those funds will not be lost but will instead be used for advertising initiatives in the following year.
As a Ledgers franchisee, this policy ensures that all contributions to the Advertising Fund are ultimately used for advertising purposes. It provides some assurance that the money franchisees pay into the fund will benefit the franchise system as a whole, even if specific advertising campaigns or initiatives are delayed.
It's worth noting that the FDD also states that in the fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees, resulting in no balance in the fund. While this may be a temporary situation, prospective franchisees should inquire about the franchisor's plans for the Advertising Fund and how it intends to utilize these fees in the future to support the growth of the Ledgers brand.