Is Ledgers required to spend any amount on advertising in the area or Territory where a franchisee is located?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Obligation to Conduct Advertising. We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising. We may use local, regional, or national advertising. We may produce advertising material in-house or though outside agencies. We are not required to spend any amount on advertising in the area or Territory where you will be located. (Franchise Agreement, Section 1.9).
Local Advertising. We do not impose any minimum local advertising requirements.
Advertising Fund. You agree to contribute 3% of your Gross Revenues into our Advertising 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.
In our last fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees and there is no balance in the Advertising Fund.
Advertising Council. We intend to establish a Franchisee Advisory Council ("FAC") composed of franchisees that advises us on operational and advertising policy. We select the members. The FAC serves in an advisory capacity only. We have the power to form, change, or dissolve the advertising council.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers is not required to spend any amount on advertising in the area or territory where a franchisee's business is located. However, Ledgers does collect an advertising fee. Franchisees must contribute 3% of their gross revenues to the Advertising Fund.
Ledgers uses the Advertising Fund to advise franchisees in the conduct of advertising or conduct advertising themselves using online, radio, television, direct mail, billboards, print or other advertising. Ledgers may use local, regional, or national advertising and may produce advertising material in-house or through outside agencies.
Ledgers states that in the last fiscal year ending December 31, 2024, the Advertising Fund did not collect or spend any Advertising Fund Fees, and there was no balance in the Advertising Fund. Ledgers also intends to establish a Franchisee Advisory Council composed of franchisees that advises them on operational and advertising policy. However, Ledgers maintains the power to form, change, or dissolve the advertising council.