What specific banking details does Ledgers require franchisees to provide?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
all representations requiring prospective franchisees to assent to a release, estoppel, or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
EXHIBIT B-FRANCHISE AGREEMENT
SUMMARY PAGE 1. Franchisee Business Entity 2. Initial Franchise Fee $ 3. Territory Name 4. Opening Deadline 5. Principal Executive 6. Franchisee's Address 7. Outlet #
TABLE OF CONTENTS
- Scope 2 2. 3. Duties of Franchis
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 Ledgers Franchise Disclosure Document, franchisees are required to authorize automatic bank drafts. This authorization is outlined in Schedule 3 of the Franchise Agreement.
This means that as a Ledgers franchisee, you will need to provide your bank account information to Ledgers to facilitate the automatic withdrawal of certain fees or payments as specified in the Franchise Agreement. This is a fairly standard practice in franchising, as it ensures timely payments and reduces administrative burdens for both the franchisee and the franchisor.
Prospective franchisees should carefully review Schedule 3 of the Franchise Agreement to understand which fees are subject to automatic bank drafts, the frequency of these drafts, and any potential penalties for insufficient funds or canceled authorizations. It is also important to understand the process for disputing any charges made via automatic bank draft and the conditions under which the authorization can be modified or terminated.