What is the relationship between the advertising fee for Ledgers (Item 6) and the franchisee's obligation to participate in local marketing efforts as described in Item 9?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ions.*
Your advertising and promotions will conform to the following requirements:
-
- You will advertise and promote only in a manner that will reflect favorably on us.
-
- You will participate in all promotional programs and that we create, offer or advertise.
-
- 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.
C. Fund.
Franchisor owned outlets do not have to contribute to the Advertising Fund, but may do so. We administer the Advertising Fund. The Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we may carry over those fees and apply them to the next fiscal year. We may not use Advertising Fees to solicit new franchise sales.
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees are required to participate in local marketing efforts and contribute to an advertising fund. Item 9 outlines the franchisee's obligations, including advertising, which is further detailed in Section 1.8 of the franchise agreement and Items 8 and 11 of the disclosure document.
Specifically, franchisees must contribute 3% of the previous month's gross revenues to the Advertising Fund monthly. This fund is used by Ledgers to advise franchisees in their advertising efforts or to conduct advertising themselves through various channels such as online, radio, television, direct mail, billboards, and print. Ledgers has the discretion to use the fund for local, regional, or national advertising and is not required to spend any specific amount in the franchisee's area or territory.
The advertising requirements mandate that all franchisee advertising and promotions reflect favorably on Ledgers and comply with all applicable laws. Franchisees must participate in all promotional programs created, offered, or advertised by Ledgers. While Ledgers-owned outlets are not required to contribute to the Advertising Fund, they may choose to do so. The fund is administered by Ledgers, and while it is not audited, unaudited financial statements are available to franchisees upon written request. Any unspent advertising fees may be carried over to the next fiscal year, but Ledgers is prohibited from using these fees to solicit new franchise sales.