When is the Indemnity payment due for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnity | Actual loss sustained | At time of expense | You must indemnify us from any loss caused by your operation of the Franchised Business. |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the indemnity payment is due at the time of expense. This means that a Ledgers franchisee is responsible for covering any losses the franchisor sustains due to the franchisee's operation of the business. The franchisee must pay the indemnity amount when the expense is incurred by Ledgers.
This indemnity covers any loss caused by the franchisee's operation of the Ledgers franchise. This could include a variety of situations, such as lawsuits, damages, or other liabilities arising from the franchisee's actions or inactions in running the business.
Franchisees should be aware of this obligation and ensure they have adequate insurance and risk management practices in place to minimize potential liabilities. It is also important to understand the scope of the indemnity and what types of losses are covered, as well as to seek legal counsel to fully understand the implications of this clause in the franchise agreement.