When is the Ledgers Royalty Fee due?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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Fees
2.1. Initial Franchisee Fee
Upon execution of this Agreement, you will pay us a Franchise Fee of $15,000.00. The Franchise Fee is fully earned and nonrefundable when both Parties execute this Agreement.
2.2. Reserved
Reserved to preserve numbering.
2.3. Royalty Fee
You will pay us a continuing royalty fee in an amount equal to ten percent (10%) of Gross Revenue (the "Royalty Fee") for each month during the term of this Agreement, which will be paid to Franchisor by the tenth (10th) day of each month based on the Gross Revenue from the preceding month.
The term "Gross Revenues" is defined as all revenues that you derive or receive, directly or indirectly, from the operation of the Franchised Business, excluding only sales and use taxes.
2.4. Central Processing
If we provide central processing to you, then you will pay us the then-current rate charged by us for central processing.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Royalty Fee, which is 10% of Gross Revenue, is due by the 10th day of each month, based on the Gross Revenue from the preceding month. To facilitate this, franchisees are required to submit a monthly Royalty Report to Ledgers by the 10th day following the end of each month. This report is used to calculate the Royalty Payments owed.
Ledgers will draft the Royalty Payment from the franchisee's account on the 10th day of each month, or as soon thereafter as the payment is processed by Ledgers. Franchisees must authorize automatic bank drafts for these payments.
Late payments are subject to a service charge of 1% per month on the unpaid balance, or the maximum rate allowed by law if lower. Additionally, a minimum fee of $50 is charged for any electronic transfer or payment that is declined due to insufficient funds.