What is the relationship between the initial franchise fee for Ledgers (Item 5) and the franchisee's obligation to participate in ongoing training as described in Item 9?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
You must pay us an initial fee (the "Initial Franchise Fee) for the right to open and operate a Ledgers Franchised Business. The Initial Franchise Fee is $15,000 until October 31, 2025. Thereafter, the Initial Franchise Fee will be increased to $35,000.
You must submit the Initial Franchise Fee to us before attending Initial Training, usually when the Franchise Agreement is signed. We will refund the Initial Franchise Fee paid by you if we do not approve your application or if you do not pass our Initial Training in accordance with our thencurrent passing standards for training provided that you return to us all materials which we distributed to you during training.
We offer a 10% discount to all active-duty service members and veterans. We may offer special incentive programs from time to time as part of national or regional development efforts and we reserve the right to offer, modify, or withdraw any incentive program without any notice to you. We disclose financing terms in Item 10.
Except as described in this Item 5, the Initial Fees are uniformly imposed and non-refundable.
[The Remainder of Page Intentionally Blank] [Item 9: FRANCHISEE'S OBLIGATIONS]
| Franchisee's Obligations | Section In Franchise Agreement |
|---|---|
| d. Initial and ongoing training | 4.2 |
[Item 22: CONTRACTS]
4.2. Training
A. Initial Training.
You and any Business Manager working for you must attend and successfully complete our Initial Franchisee Training before you may operate the Franchise Business. We do not charge for training, but you must pay any travel, transportation, lodging, and meal costs you incur to attend.
B. Advanced Training.
You will attend any advanced or refresher training that we may require either through electronic means or in person.
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, payment of the initial franchise fee is required before attending initial training. Item 5 states that the initial franchise fee is $15,000 until October 31, 2025, after which it will increase to $35,000.
The FDD specifies that the initial franchise fee must be submitted before attending initial training, typically when the Franchise Agreement is signed. However, Ledgers will refund the initial franchise fee if the application is not approved or if the franchisee does not pass initial training, provided all training materials are returned.
Item 9 outlines the franchisee's obligations, including initial and ongoing training, as detailed in Section 4.2 of the Franchise Agreement and Item 11 of the Disclosure Document. Item 22 further clarifies that the franchisee and any Business Manager must attend and successfully complete initial franchisee training before operating the franchise. While Ledgers does not charge for the training itself, the franchisee is responsible for covering all travel, transportation, lodging, and meal costs associated with attending the training. Franchisees are also obligated to attend any advanced or refresher training that Ledgers may require, either electronically or in person.