What is the Insufficient Funds Fee per transaction for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1 and 2) | The Royalty Fee is 10% of Gross Revenues | See Note 1 for a definition of Gross Revenues. | |
| Advertising Fee | 3% of the previous month’s Gross Revenues | Monthly | You agree to pay this fee to us to support our advertising program. |
| Credit Card Processing Fee | The actual amount charged by third party credit card processor The actual amount charged by third party credit card processor | As incurred | |
| Central Processing Services Fee | Then current rate based on the service requested (up to 40% of our-then current Recommended Fee (Note 3) | As incurred | You agree to pay this fee to us for any central processing services we provide to your clients on your behalf. |
| Insufficient | $50 per transaction $50 per transaction | As incurred | |
| Funds Fee | |||
| Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment | Immediately upon conclusion of audit | |
| Transfer Fee | $5,000 for a transfer of the franchise or a majority interest in it. | Due before transferring | We must approve the transfer. |
| Interest and | Actual amount | As incurred | |
| Penalties | incurred Actual amount incurred | ||
| Client Refunds | The amount of any fee we refund to a client | As invoiced | |
| Fee | Amount | Due Date | Remarks |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the insufficient funds fee is $50 per transaction. This fee is incurred when a payment is made but cannot be processed due to insufficient funds in the payer's account.
For a Ledgers franchisee, this means that if a client's payment is returned due to insufficient funds, Ledgers will charge the franchisee $50. This fee is charged per transaction, so each failed payment will result in a $50 charge. The fee is due as incurred, meaning it is payable immediately after Ledgers charges it to the franchisee.
It is important for prospective Ledgers franchisees to be aware of this fee and factor it into their financial planning. Franchisees should also implement measures to minimize the occurrence of insufficient funds payments, such as verifying client payment information and sending payment reminders. This fee is in addition to any fees the franchisee's bank might charge for a returned payment.