If Ledgers receives funds from required purchases or leases, how may Ledgers utilize these funds?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not currently, but reserve the right in the future to derive revenue or other material consideration from required purchases or leases by you. Further, we may utilize any such funds received by us in our sole judgment.
In our last fiscal year ended December 31, 2024, neither we nor our affiliates earned revenue or other material consideration from required purchases or leases by franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers reserves the right to derive revenue or other material consideration from required purchases or leases by franchisees in the future. Should Ledgers receive such funds, it may utilize them in its sole judgment.
This means that Ledgers has the discretion to use any revenue it receives from franchisee purchases or leases as it sees fit. This could include reinvesting in the company, distributing profits, or any other purpose Ledgers deems appropriate. While this provides Ledgers with flexibility, it also means that franchisees have no control over how these funds are used and no guarantee that the funds will be used in a way that directly benefits them.
It is important to note that, as of the last fiscal year ending December 31, 2024, neither Ledgers nor its affiliates earned revenue or other material consideration from required purchases or leases by franchisees. However, this policy may change in the future, so prospective franchisees should be aware of this potential revenue stream for Ledgers and its implications. Franchisees should consider asking Ledgers for more specifics on how such funds would be utilized if they were collected.