factual

Regarding advertising and promotion for a Ledgers franchise, what standard must the franchisee maintain to reflect favorably on Ledgers?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

1.8. Advertising

A. Local Advertising and Promotions.

Your advertising and promotions will conform to the following requirements:

    1. You will advertise and promote only in a manner that will reflect favorably on us.
    1. You will participate in all promotional programs and that we create, offer or advertise.
    1. Your advertising must comply with federal, state, and local laws.

B. Advertising Fee

You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, franchisees must ensure their advertising and promotional activities reflect favorably on the Ledgers brand. This means all advertising and promotions undertaken by the franchisee should positively represent the brand's image and reputation.

In addition to maintaining a favorable reflection, franchisees are required to participate in all promotional programs that Ledgers creates, offers, or advertises. This ensures a unified marketing approach across the franchise system. Furthermore, all advertising must comply with federal, state, and local laws, ensuring legal compliance in all marketing efforts.

Ledgers also requires franchisees to contribute 3% of the previous month's gross revenues into an Advertising Fund, which is used to advise franchisees in their advertising efforts or to conduct advertising on a local, regional, or national level. This fund is administered by Ledgers, and while it is not audited, unaudited financial statements are available to franchisees upon written request. Franchisees should be aware that Ledgers is not required to spend any specific amount on advertising in the franchisee's particular area or territory.

Prospective franchisees should consider the financial commitment to the Advertising Fund and the importance of adhering to Ledgers' standards for advertising and promotion. They should also inquire about the specific types of promotional programs they will be expected to participate in and how Ledgers ensures compliance with advertising laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.