According to Ledgers' 2025 Franchise Disclosure Document, if an audit of a Ledgers franchise reveals an underreporting of gross revenues or an underpayment to Ledgers of 5% or more, the franchisee will be responsible for paying Ledgers' cost of performing the audit. In addition to covering the audit expenses, the franchisee will also incur a late fee of $50 per month on any late payments identified during the audit.

This late fee applies specifically to underpayments discovered through an audit process, where the underreporting or underpayment meets or exceeds the 5% threshold. It serves as a penalty for inaccuracies in financial reporting and ensures that Ledgers is compensated for the additional scrutiny required to uncover these discrepancies.

Prospective Ledgers franchisees should be aware of this audit fee and late payment penalty, ensuring accurate financial reporting to avoid such charges. Maintaining meticulous records and adhering to Ledgers' reporting guidelines can help franchisees avoid triggering an audit and incurring these additional costs.