Does Ledgers reserve the right to derive revenue from required purchases or leases by franchisees in the future?

According to Ledgers's 2025 Franchise Disclosure Document, Ledgers retains the right to generate revenue from franchisee's required purchases or leases in the future. While Ledgers does not currently receive revenue or other material consideration from required purchases or leases by franchisees, they explicitly state that they reserve the right to do so in the future. Furthermore, Ledgers has the right to utilize any funds received from these sources in their sole judgment. In the last fiscal year, which ended December 31, 2024, neither Ledgers nor its affiliates earned revenue or other material consideration from required purchases or leases by franchisees.

This policy means that a future Ledgers franchisee may be subject to additional costs or fees that directly benefit the franchisor. It is a fairly common practice in franchising for franchisors to receive rebates or other forms of compensation from approved suppliers, which can create a revenue stream for the franchisor and potentially influence the selection of required vendors.

Prospective franchisees should inquire about the specific circumstances under which Ledgers would implement such revenue-generating practices, how these revenues would be used, and what impact this might have on the franchisee's costs and profitability. Understanding these potential revenue streams is crucial for a franchisee to accurately assess the overall financial implications of investing in a Ledgers franchise.