Is Ledgers permitted to use Advertising Fees to solicit new franchise sales?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ions.*
Your advertising and promotions will conform to the following requirements:
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- You will advertise and promote only in a manner that will reflect favorably on us.
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- You will participate in all promotional programs and that we create, offer or advertise.
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- Your advertising must comply with federal, state, and local laws.
B. Advertising Fee
You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
C. Fund.
Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may not use Advertising Fees to solicit new franchise sales.
1.9. Our Obligation to Conduct Advertising
We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers is restricted from using advertising fees to solicit new franchise sales. Franchisees are required to contribute 3% of the previous month's gross revenues to the Advertising Fund monthly. While franchisor-owned outlets are not mandated to contribute, they have the option to do so.
Ledgers administers the Advertising Fund, and it is not subject to audits. However, upon written request, franchisees can access unaudited financial statements of the Advertising Fund. If the Advertising Fees are not fully utilized within the fiscal year, Ledgers has the discretion to carry over the remaining funds for application in the subsequent fiscal year.
Ledgers uses the advertising fund to advise franchisees in their advertising efforts or conduct advertising themselves through various channels such as online platforms, radio, television, direct mail, billboards, and print media. These advertising efforts may be local, regional, or national in scope, and Ledgers may produce advertising material internally or through external agencies. Ledgers is not obligated to spend any specific amount on advertising in the area or territory where a franchisee is located and retains the right to modify marketing programs to incorporate new technologies.