When are third party charges that Ledgers incurs on your behalf due?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Third party charges that we incur on your behalf | Actual amount of charge | At time of expense | If we incur third party charges on your behalf, you agree to reimburse us for any such charges. |
Source: Item 6 — OTHER FEES (FDD pages 17–20)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Ledgers for any third-party charges Ledgers incurs on the franchisee's behalf. These charges are due "at time of expense." This means that whenever Ledgers pays for a service or charge from another company on your behalf, you are expected to pay Ledgers back at that time.
This arrangement means a Ledgers franchisee needs to maintain sufficient cash flow to cover these potential expenses promptly. While the FDD does not specify what these third-party charges might be, it is important for a prospective franchisee to understand what these could include and budget accordingly. Failure to pay these charges on time could potentially lead to late fees or other penalties, as outlined elsewhere in the FDD.
It is common practice in franchising for franchisees to reimburse franchisors for expenses incurred on their behalf. However, the specific types of charges and the timing of payments can vary. A prospective Ledgers franchisee should seek clarification from Ledgers regarding the types of third-party charges they might expect and how Ledgers will notify them of these expenses to ensure timely reimbursement.