Under what financial threshold will a Ledgers franchisee be charged an audit fee and late fee?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ate or assist in the operation of the Franchised Business.
2.13. Client Refunds
If you do not resolve a Client service complaint and we believe a reasonable basis exists for a refund to the Client all or a portion of the Client's fees, we may pay th
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee will be subject to an audit fee and a late fee under specific conditions related to financial reporting accuracy.
Ledgers will charge a franchisee for the cost of performing an audit of their franchise business. In addition to the audit fee, a late fee of $50 per month will be applied if the audit reveals that the franchisee has underreported gross revenues or underpaid Ledgers by 5% or more.
This policy incentivizes accurate and timely financial reporting from franchisees. The audit and late fee serve as a deterrent against underreporting income, which directly impacts the royalty payments Ledgers receives. Franchisees should ensure meticulous record-keeping and transparent reporting to avoid triggering these fees.