What was the term length of the franchise agreement Ledgers entered into with a member of management in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
------------| | Accounts receivable | | | | | Loyalty LLC | $ 610,180 | $1,209,516 | $1,300,815 | | Loyalty Franchising | 15,000 | 15,000 | 15,000 | | The Inspection Boys | 5,000 | 5,000 | 5,000 | | | $ 630,180 | $1,229,516 | $1,320,815 | | Accounts payable | | | | | Hewitt Construction | $ 7,000 | $ 7,000 | $ - | | Zoomin Groomin | 519,000 | 436,000 | 150,000 | | ATAX, LLC | 326,180 | 294,180 | 155,000 | | | $ 852,
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company entered into a franchise agreement with a member of management in 2024. The term of this agreement was 10 years.
Notably, this franchise agreement with a member of management did not require any initial franchise license fees. However, it did require monthly royalty and marketing fees.
For the year ending December 31, 2024, the total royalty revenue related to this particular franchise agreement amounted to $8,943. The total outstanding royalty receivables as of December 31, 2024, were $560.