Does Ledgers reserve the right to require franchisees to use Central Processing Services in the future?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 3: Ledgers' Central Processing Services is a centralized support system offered by us to enhance efficiency and service quality across the franchise network. Through this program, we offer to provide certain personal and business tax preparation, bookkeeping, and business planning services directly to clients on your behalf utilizing a joint engagement form. We publish an annual price list for the then-current services offered by us, which may vary from time to time. Each service offered by us includes a recommended fee for you to charge your clients (the "Recommended Fee") and includes the fee we charge for the services (the "Central Processing Services Fee"). We do not currently require you to utilize our Central Processing Services, but we reserve the right to do so.
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers does not currently mandate the use of its Central Processing Services, but it retains the right to require franchisees to use these services in the future. Ledgers' Central Processing Services is a centralized support system that offers personal and business tax preparation, bookkeeping, and business planning services directly to clients on behalf of the franchisee, utilizing a joint engagement form.
The fees for these services are based on an annual price list published by Ledgers, which may change over time. Each service includes a Recommended Fee for the franchisee to charge clients and a Central Processing Services Fee, which is the fee Ledgers charges for providing the services. The Central Processing Services Fee is up to 40% of Ledgers' then-current Recommended Fee.
For a prospective franchisee, this means that while you are not currently obligated to use Ledgers' Central Processing Services, this could change. If Ledgers mandates the use of these services in the future, it would impact your operational costs and potentially your revenue, as you would need to factor in the Central Processing Services Fee. It is important to stay informed about any changes to Ledgers' policies regarding Central Processing Services and to understand how these changes could affect your business.