What is the purpose of the Ledgers Royalty Report?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Recurring fees: You are responsible for providing a monthly Royalty Report to us. The Royalty Report is due on the 10th day following the end of each month. The Royalty Report is used to calculate your Royalty Payments owed to us. Your Royalty Payments are due on the same date. You will execute an Automatic Bank Draft Authorization on a form substantially similar to that in Schedule 2. We will draft your Royalty Payment on the 10th day of each month or as soon thereafter as they are processed by us.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Royalty Report that franchisees must submit monthly is used to calculate the royalty payments owed to Ledgers. Franchisees are required to provide this report by the 10th day following the end of each month, and their royalty payments are due on the same date.
Ledgers will draft the royalty payment from the franchisee's account on the 10th of each month, or as soon as the payment is processed. This process is facilitated through an Automatic Bank Draft Authorization form, ensuring timely and consistent payment of royalties.
It is important for prospective Ledgers franchisees to understand the implications of this reporting and payment structure. Failure to submit the Royalty Report on time or to have sufficient funds for the automatic draft could result in late fees or other penalties. This system ensures that Ledgers receives its royalty payments in a timely and efficient manner, while also placing the responsibility on the franchisee to accurately report their financial information.