Is there a transfer fee associated with transferring a Ledgers franchise, and where can I find more information about it?

According to the 2025 Ledgers Franchise Disclosure Document, a transfer fee is required when transferring ownership of a Ledgers franchise. Specifically, if a franchisee wishes to transfer ownership of the rights under the Franchise Agreement, or a majority of the ownership of the agreement or in an entity holding the agreement, they must pay Ledgers a transfer fee of $5,000. This information can be found in Section 2.11 of Item 22.

However, there are exceptions where a transfer fee is not charged. For instance, Ledgers will not charge a transfer fee for a transfer to a Controlled Entity, which is defined as an entity in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest. Similarly, a transfer of interest within a franchisee's entity will not trigger a transfer fee if only the percentage ownership changes rather than the identity of the owners.

In the event of death or incapacity, the Ledgers agreement may be terminated unless the executor, personal representative, or guardian seeks a transfer of rights, completes the transfer within six months, pays all monies owed including the transfer fee, and signs the current transfer and release form. This highlights the importance of understanding the conditions under which transfer fees apply and the procedures required for different transfer scenarios.

Prospective franchisees should carefully review Item 22 of the FDD and the referenced sections within the Franchise Agreement to fully understand the transfer conditions, associated fees, and any potential exceptions. Understanding these details is crucial for financial planning and decision-making related to the potential sale or transfer of the Ledgers franchise in the future.