Does Ledgers require me to purchase bookkeeping and payroll services that I will sell to my clients?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Bookkeeping, Payroll, and Business Support Services. You must purchase our bookkeeping and payroll services that you will sell to your clients unless you provide such services yourself. You must purchase our business support services that we render on your behalf to your clients.
We are an approved supplier of advertising material and bookkeeping and payroll services that you will sell to your clients, but not the only approved supplier of such items. We are an approved supplier, and the only approved supplier, of business support services (central processing and website services) that we render on your behalf to your clients.
We estimate that required purchases described above will be approximately 15-20% of all purchases and leases by you of goods and services to establish a franchise and approximately 10- 15% of your operating costs.
We currently do not receive payments from suppliers as a result of purchases by our franchisees; however, we may do so in the future.
We do not provide material benefits to you based on your use of a particular supplier. However, when your franchise is up for renewal, to continue your franchise rights, we require you to be in compliance with your Franchise Agreement which includes compliance with any supplier standards that are contained in our Operations Manual.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–25)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees are generally required to purchase bookkeeping and payroll services from Ledgers to sell to their clients. However, this requirement is waived if the franchisee provides these services themselves. Ledgers also mandates the purchase of their business support services, which are rendered on the franchisee's behalf to their clients.
Ledgers is an approved supplier of advertising material and bookkeeping and payroll services that franchisees will sell to their clients, but not the only approved supplier of such items. Ledgers is the sole approved supplier of business support services (central processing and website services) that they render on the franchisee's behalf to their clients. This means that while franchisees have some choice in where they obtain bookkeeping and payroll services (provided they don't use their own), they must exclusively use Ledgers for business support services.
The FDD also states that required purchases are estimated to be approximately 15-20% of all purchases and leases to establish a franchise and approximately 10-15% of operating costs. This indicates that the cost of these required services could have a notable impact on a franchisee's initial investment and ongoing expenses. Prospective franchisees should carefully consider these costs and evaluate whether providing bookkeeping and payroll services themselves is a viable option to reduce expenses.
It is important to note that Ledgers does not currently receive payments from suppliers as a result of franchisee purchases, but they reserve the right to do so in the future. Additionally, while Ledgers does not provide material benefits based on the use of a particular supplier, compliance with supplier standards in the Operations Manual is required for franchise renewal. Therefore, franchisees should stay informed about any changes to supplier arrangements and standards to ensure they remain compliant and can renew their franchise agreement.