Are there any exceptions to the non-refundable nature of the initial fees for a Ledgers franchise, besides not being approved or failing training?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
d in this Item.
ITEM 5 INITIAL FEES
You must pay us an initial fee (the "Initial Franchise Fee) for the right to open and operate a Ledgers Franchised Business. The Initial Franchise Fee is $15,000 until October 31, 2025. Thereafter, the Initial Franchise Fee will be increased to $35,000.
You must submit the Initial Franchise Fee to us before attending Initial Training, usually when the Franchise Agreement is signed. We will refund the Initial Franchise Fee paid by you if we do not approve your application or if you do not pass our Initial Training in accordance with our thencurrent passing standards for training provided that you return to us all materials which we distributed to you during training.
We offer a 10% discount to all active-duty service members and veterans. We may offer special incentive programs from time to time as part of national or regional development efforts and we reserve the right to offer, modify, or withdraw any incentive program without any notice to you. We disclose financing terms in Item 10.
Except as described in this Item 5, the Initial Fees are uniformly imposed and non-refundable.
[The Remainder of Page Intentionally Blank]
ITEM 6 OTHER FEES
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee (Notes 1 and 2) | The Royalty Fee is 10% of Gross Revenues | See Note 1 for a definition of Gross Revenues. |
Source: Item 5 — INITIAL FEES (FDD page 17)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable, with two specific exceptions. Ledgers will refund the initial franchise fee if they do not approve a prospective franchisee's application or if the franchisee does not pass the initial training. This refund is conditional, requiring the franchisee to return all training materials provided by Ledgers. The initial franchise fee is $15,000 until October 31, 2025, after which it increases to $35,000.
For California franchisees, there is an additional exception regarding the initial fee. The Department of Financial Protection and Innovation mandates that Ledgers defer collecting all initial fees from California franchisees until Ledgers has fulfilled all pre-opening obligations and the franchisee is open for business. This deferral provides a financial safeguard for franchisees in California, ensuring they only pay the initial fee after Ledgers has met its initial responsibilities.
Ledgers also offers a 10% discount on the initial franchise fee to active-duty service members and veterans. While this reduces the amount of the initial fee, it does not change the non-refundable nature of the fee, except in the cases of application disapproval or failure to pass initial training. Ledgers retains the right to offer, modify, or withdraw any incentive programs without notice. Except for these specific conditions, the initial fees are uniformly imposed and non-refundable.