What does Schedule 2 of the Ledgers Franchise Agreement pertain to?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Schedule 1 | Territory |
|---|---|
| Schedule 2 | Automatic Bank Draft Authorization |
| Schedule 3 | Telephone Number Assignment |
| Schedule 4 | Lease Rider |
| Schedule 5 | Release |
| Schedule 6 | State Addenda to the Franchise Agreement |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, Schedule 2 of the Franchise Agreement pertains to the Automatic Bank Draft Authorization. This schedule likely contains the terms and conditions for franchisees to authorize Ledgers to automatically debit their bank accounts for various fees and payments owed to the company.
Automatic bank drafts are a common method used by franchisors to ensure timely payments from franchisees. This can include franchise fees, royalty payments, marketing contributions, and other charges outlined in the franchise agreement. By agreeing to automatic bank drafts, franchisees authorize Ledgers to directly withdraw funds from their designated bank account on a recurring basis.
Prospective Ledgers franchisees should carefully review Schedule 2 to understand the specific details of the automatic bank draft authorization, including the frequency of payments, the amounts to be debited, and the procedures for modifying or canceling the authorization. Franchisees should also be aware of any penalties or fees associated with insufficient funds or failed transactions. Understanding these terms is crucial for managing cash flow and maintaining a positive financial relationship with Ledgers.