Is there a schedule attached to the Ledgers Franchise Agreement that requires an Automatic Bank Draft Authorization?
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 |
Recurring fees: You are responsible for providing a monthly Royalty Report to us. The Royalty Report is due on the 10th day following the end of each month. The Royalty Report is used to calculate your Royalty Payments owed to us. Your Royalty Payments are due on the same date. You will execute an Automatic Bank Draft Authorization on a form substantially similar to that in Schedule 2. We will draft your Royalty Payment on the 10th day of each month or as soon thereafter as they are processed by us.
Other fees: We will provide an invoice to you for other fees incurred. Payment is due upon receipt. We will draft your account on the same date, or as soon thereafter as the draft is processed by us. We reserve the right to deduct monies that you owe to us from any monies that we pay to you.
You will pay to us a minimum of $50 per transaction if an electronic transfer or other payment from you to us is declined.
Overdue amounts owed by you are subject to a service charge of 1% per month on the unpaid balance, or if lower, then the maximum rate allowed by law.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Schedule 2 of the Franchise Agreement is designated for the Automatic Bank Draft Authorization.
Ledgers franchisees are required to authorize automatic bank drafts for royalty payments. The Royalty Report, which calculates the royalty payments, is due on the 10th day following the end of each month, and the royalty payments are also due on the same date. Ledgers will draft the royalty payment from the franchisee's account on the 10th of each month, or as soon thereafter as the payments are processed by Ledgers.
Ledgers also states that they will provide an invoice to the franchisee for other fees incurred, which are due upon receipt. Ledgers will draft these payments from the franchisee's account on the same date, or as soon thereafter as the draft is processed. Ledgers retains the right to deduct any monies owed by the franchisee from any monies that Ledgers pays to the franchisee. If an electronic transfer or other payment is declined, the franchisee will pay Ledgers a minimum of $50 per transaction. Overdue amounts are subject to a service charge of 1% per month on the unpaid balance, or the maximum rate allowed by law, if lower.