What is the relationship between the advertising fee for Ledgers (Item 6) and the franchisee's obligation to maintain a positive brand image as described in Item 9?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
1.8. Advertising
A. Local Advertising and Promotions.
Your advertising and promotions will conform to the following requirements:
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- You will advertise and promote only in a manner that will reflect favorably on us.
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- You will participate in all promotional programs and that we create, offer or advertise.
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- 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.
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are obligated to contribute to the Advertising Fund, and their advertising activities must reflect positively on the brand. Specifically, franchisees must contribute 3% of the previous month's gross revenues to the Advertising Fund. This fee is used by Ledgers to conduct advertising and advise franchisees on their advertising efforts.
Item 9 of the FDD outlines the franchisee's obligations, referencing Section 1.8 of the Franchise Agreement, which pertains to advertising. This section stipulates that all franchisee advertising and promotions must reflect favorably on Ledgers. This requirement ensures that the franchisee's local advertising efforts align with and uphold the brand's image.
Ledgers has the right to modify marketing programs as it deems necessary to embrace new technologies. The company also maintains a comprehensive website with franchisee location information and may engage in digital marketing to promote the brand. While franchisees contribute to the advertising fund, Ledgers is not required to spend any amount on advertising in the franchisee's specific area or territory. This highlights the importance of franchisees adhering to brand standards in their local advertising to maintain a consistent and positive brand image, as Ledgers retains control over broader advertising strategies and fund allocation.