How often is the Advertising Fee calculated 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. |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the advertising fee is calculated monthly. The fee is 3% of the previous month’s gross revenues. This fee is paid to Ledgers to support their advertising program.
For a prospective franchisee, this means that each month, 3% of the total revenue generated in the previous month will be allocated towards the advertising fund. This is a common practice in franchising, where franchisees contribute to a collective fund to support brand awareness and marketing efforts.
It is important for franchisees to understand how gross revenues are defined, as this will directly impact the advertising fee calculation. Gross revenues for Ledgers is defined as all revenues that you derive or receive, directly or indirectly, from the operation of the Franchised Business, excluding only sales and use taxes. This consistent monthly advertising contribution helps ensure ongoing marketing support for the Ledgers franchise system.