When are referral fee revenues generally earned by Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company also generates revenue for referring certain vendors to its franchisees. Referral fee revenue arrangements vary by vendor and the underlying revenues are generally earned at a point in time commensurate with when the franchisee enrolls with the vendor.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the company generates revenue from franchise fees, royalty fees, and referral fees. Referral fee revenues are earned when a franchisee enrolls with a vendor that Ledgers refers them to.
For a prospective Ledgers franchisee, this means that a portion of their revenue may be tied to vendors recommended by the franchisor. The timing of when Ledgers recognizes this referral revenue is linked directly to when the franchisee signs up with the vendor.
It is important for a potential franchisee to understand which vendors Ledgers commonly refers its franchisees to, and what the terms are for these referrals. This will allow the franchisee to forecast potential referral fee revenue and understand the conditions under which Ledgers earns that revenue.