How does the requirement to use approved advertising materials for Ledgers (Item 8) relate to the franchisee's obligation to pay an advertising fee (Item 6)?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising and Marketing**.** You must use advertising material from us, a vendor that we designate, or we must approve the advertising in writing, prior to its use.
You will contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
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.
Print Material. We supply you with templates of fliers, coupons, and other print material. (Franchise Agreement, Section 1.9.C)
Use of Your Own Advertising Material. You may use your own advertising materials provided that you submit them to us and we approve them, in writing, and they adhere to federal, state and local law. If our written approval is not received within 14 days from the date we received the material, the material is deemed disapproved. (Franchise Agreement, Section 1.9.D).
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.
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees are required to use advertising material from Ledgers, a designated vendor, or advertising that Ledgers has approved in writing. This restriction on advertising materials directly relates to the franchisee's obligation to contribute to the Advertising Fund. Franchisees must contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
Ledgers uses the monies in 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 produce advertising material in-house or through outside agencies. However, Ledgers is not required to spend any amount on advertising in the area or Territory where a franchisee will be located.
Ledgers also supplies franchisees with templates of fliers, coupons, and other print material. Franchisees can use their own advertising materials if they submit them to Ledgers, the materials conform to the manual, adhere to federal, state, and local law, and Ledgers approves them in writing. If written approval is not received within 14 days from the date Ledgers receives the material, the material is considered disapproved.
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. This means that while franchisees are obligated to contribute to the fund, there is no guarantee that the funds will be used, or used in a way that directly benefits their specific location. A prospective franchisee should inquire about Ledgers' plans for the Advertising Fund and how it intends to support franchisees' marketing efforts.