Who provides the credit card processing services 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 |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the credit card processing services are provided by a third-party credit card processor. The franchisee is responsible for paying the actual amount charged by this third-party processor as the Credit Card Processing Fee. This fee is incurred as services are used.
This arrangement is typical in franchising, where franchisors often outsource specific services to specialized third-party vendors. By using a third-party credit card processor, Ledgers does not directly handle credit card transactions, which can reduce its liability and administrative burden. However, the FDD does not specify which third-party credit card processor Ledgers franchisees must use.
For a prospective Ledgers franchisee, this means they will need to establish a relationship with a credit card processing company. It would be prudent to inquire with Ledgers about any preferred or approved vendors, as using an approved vendor may offer benefits such as pre-negotiated rates or integration with Ledgers's systems. Understanding the costs associated with credit card processing is crucial for managing the financial aspects of the franchise.