Does Ledgers provide any material benefits to franchisees based on their use of particular suppliers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide material benefits to you based on your use of a particular supplier. However, when your franchise is up for renewal, to continue your franchise rights, we require you to be in compliance with your Franchise Agreement which includes compliance with any supplier standards that are contained in our Operations Manual.
We negotiate purchase arrangements with suppliers, including preferred pricing arrangements, for the benefit of our franchisees. We do not currently, but reserve the right in the future to, receive payments from approved suppliers with respect to your purchases. Furthermore, we may utilize any such funds received by us in our sole judgment.
We estimate that required purchases described above will be approximately 15-20% of all purchases and leases by you of goods and services to establish a franchise and approximately 10- 15% of your operating costs.
If you wish to purchase products or services from a nonapproved vendor; you must submit the vendor for approval. We charge $100/hour plus our costs to evaluate an alternative supplier. Our right to approve or disapprove will be done in a reasonable manner within 30 days of our receipt of your request. For example, if you wish to purchase items bearing our Marks, we may request from the vendor seeking approval, a sample to insure they meet our standards. We will make you aware of our decision concerning the vendor via email within a reasonable time. If we choose to deny your request or subsequently revoke our approval, we will inform you via email of our reasons for the action. If we feel it is in the best interests of the network, we may choose to limit the number of approved vendors that you may purchase specific products from.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers does not provide material benefits to franchisees for using specific suppliers. However, compliance with supplier standards outlined in the Operations Manual is required for franchise renewal.
Ledgers negotiates purchase arrangements with suppliers, potentially including preferred pricing, for the benefit of its franchisees. While Ledgers does not currently receive payments from suppliers based on franchisee purchases, it reserves the right to do so in the future. Any such funds received may be used at Ledgers' discretion.
Franchisees are required to purchase certain goods and services according to Ledgers' specifications, which may include designated vendors. These required purchases are estimated to be 15-20% of the initial investment to establish the franchise and 10-15% of ongoing operating costs. While franchisees can propose alternative suppliers, Ledgers charges $100 per hour plus costs to evaluate them, with a decision made within 30 days. Ledgers may limit the number of approved vendors for specific products if it deems necessary for the network's best interests.