What information must a Ledgers franchisee provide to Ledgers when transferring interest within an entity?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
A transfer of interest within a Franchisee entity will not trigger the Right of First Refusal if only the percentage ownership changes rather than the identity of the owners. At the time of the desired transfer of interest within an entity, you must notify us in writing of 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 will 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 franchisee must notify Ledgers in writing when a transfer of interest occurs within the franchisee's business entity. This notification must include the name and address of each officer, director, shareholder, member, partner, or similar person, along with their respective ownership interest in the entity.
This requirement ensures that Ledgers is aware of any changes in the ownership and management structure of its franchisees. By collecting this information, Ledgers can maintain accurate records of who is involved in each franchise location and their level of control. This allows Ledgers to assess whether the new ownership structure aligns with their standards and qualifications for franchisees.
Furthermore, each person associated with the controlled entity must sign Ledgers' then-current amendment and release forms or Franchisee Agreement as required by Ledgers. Ledgers does not charge a transfer fee for changes of this nature. This process helps Ledgers ensure that all individuals involved in the franchise operation are bound by the terms and conditions of the franchise agreement, even after a transfer of interest within the entity.