What is the purpose of the Audit Fee for a Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment | Immediately upon conclusion of audit |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the Audit Fee is charged to cover the cost of an audit. This fee is due immediately upon the conclusion of the audit. Additionally, Ledgers charges a late fee of $50 per month for any late payment of the Audit Fee.
For a prospective Ledgers franchisee, this means that if Ledgers conducts an audit of their franchise, the franchisee will be responsible for paying the cost of the audit. It is important to note that the FDD does not specify the circumstances under which an audit might be conducted. Franchisees should clarify with Ledgers under what conditions an audit would be triggered and what factors might influence the cost of the audit.
It is also important to be aware of the late fee policy. If the franchisee fails to pay the Audit Fee promptly after the audit is completed, they will incur a $50 per month late fee. Franchisees should ensure they understand the payment terms and deadlines to avoid these additional charges. Understanding the potential triggers and costs associated with audits is a crucial part of financial planning for a Ledgers franchise.