What is the subject of Schedule 3 of the Ledgers Franchise Agreement?
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 3 of the Franchise Agreement pertains to Automatic Bank Draft Authorization. This schedule likely outlines the terms and conditions under which the franchisee authorizes Ledgers to automatically debit payments from their bank account.
This authorization typically covers various fees and ongoing payments due to Ledgers, such as royalty fees, marketing contributions, or other service charges. The specific details within Schedule 3 would specify the frequency of these drafts (e.g., weekly, monthly), the amounts to be debited, and the procedures for modifying or canceling the authorization.
For a prospective Ledgers franchisee, understanding the terms of the Automatic Bank Draft Authorization is crucial. It ensures clarity on payment obligations and helps in managing cash flow. Franchisees should carefully review this schedule to understand their rights and responsibilities regarding these automatic payments, including any potential penalties for insufficient funds or unauthorized deductions.