Can Ledgers require review-only access to all bank accounts used by the franchisee receiving deposits arising from or related to the Franchise Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We will access records stored on online cloud storage at our election to ensure operational compliance. Should we request access to information stored by you on site, you will provide copies within five (5) business days of receiving our request of your paper and electronic records related to the Franchised Business and any other operations taking place through your Franchised Business. This also includes the right to inspect and copy all tax returns and bank statements that may show revenues from the Franchised Business. Alternatively, we may require review only access to all bank accounts used by you receiving deposits arising from or related to the Franchise Business.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers has the right to access a franchisee's bank accounts. Specifically, Ledgers can request copies of tax returns and bank statements that show revenues from the Franchised Business. Alternatively, Ledgers can require review-only access to all bank accounts used by the franchisee for deposits arising from or related to the Franchise Business.
This means that as a Ledgers franchisee, you may be required to grant Ledgers access to view your business bank account activity. This access would allow Ledgers to monitor deposits related to the franchise.
This level of access is designed to ensure operational compliance and verify revenue reporting. While Ledgers can review the accounts, the franchisee maintains control over the funds. Prospective franchisees should consider this access as part of their financial and operational relationship with Ledgers.