What is the purpose of the Advertising Fee for a Ledgers franchise?

According to Ledgers' 2025 Franchise Disclosure Document, the Advertising Fee is intended to support the franchisor's advertising program. Franchisees are required to pay this fee, which is calculated as 3% of the previous month’s Gross Revenues. This fee is paid monthly. Gross Revenues are 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 means that a portion of a Ledgers franchisee's revenue is allocated to a central advertising fund managed by the franchisor. The purpose of this fund is to promote the Ledgers brand and attract customers to the franchise system as a whole. The amount paid into this fund will fluctuate based on the franchisee's monthly sales performance; higher revenues will result in a higher advertising fee for that month.

Franchise agreements commonly include advertising fees as a way to ensure consistent marketing efforts across the entire brand. These fees are used for various advertising and promotional activities, such as online advertising, traditional media campaigns, and local marketing initiatives. The franchisee benefits from these advertising efforts through increased brand awareness and customer traffic, which can lead to higher revenues. It is important for prospective franchisees to understand how these funds are managed and what specific advertising activities are supported by the fee.