What information must a Ledgers franchisee provide to Ledgers when transferring interest to a Controlled Entity?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Controlled Entity" is an entity in which you are the beneficial owner of 100% of each class of voting ownership interest. A transfer to a "Controlled Entity" will not trigger the Right of First Refusal. At the time of the desired transfer of interest to a Controlled Entity, you must notify us in writing of the name of the Controlled Entity and 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 must 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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a "Controlled Entity" is defined as an entity where the franchisee is the beneficial owner of 100% of each class of voting ownership interest. When a Ledgers franchisee wants to transfer their interest to a Controlled Entity, they must provide written notification to Ledgers.
This notification must include the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest in the entity. Additionally, each of these individuals within the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers.
Notably, Ledgers does not charge a transfer fee for transfers of interest to a Controlled Entity. This process allows a Ledgers franchisee to structure their business for legal or tax purposes without incurring additional costs, provided they maintain complete ownership and control through the Controlled Entity.