What happens to unspent Advertising Fees at the end of the fiscal year for Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
C. Fund.
Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may not use Advertising Fees to solicit new franchise sales.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, any advertising fees that are not spent during the fiscal year may be carried over and applied to the subsequent fiscal year. Ledgers franchisees are required to contribute 3% of the previous month's gross revenues into the Advertising Fund monthly.
Ledgers administers this Advertising Fund, and while franchisor-owned outlets are not mandated to contribute, they have the option to do so. It's important to note that the Advertising Fund is not audited; however, Ledgers will make unaudited financial statements of the Advertising Fund available to franchisees upon written request.
This policy of carrying over unspent advertising fees provides Ledgers with flexibility in managing advertising resources and potentially allows for larger or more strategic advertising initiatives in future periods. However, franchisees should be aware that they must request the unaudited financial statements to monitor how the fund is being managed and how their contributions are being utilized. Furthermore, Ledgers is restricted from using Advertising Fees to solicit new franchise sales, ensuring that the funds are used for advertising and promotional activities to benefit current franchisees.