According to Ledgers' 2025 Franchise Disclosure Document, the franchise agreement defines "incapacity" as a condition that prevents a franchisee from reasonably carrying out their duties under the agreement for 30 consecutive days. This definition is important because it triggers certain clauses in the agreement related to the transfer of the franchise in the event of the franchisee's inability to manage the business.

Specifically, if a Ledgers franchisee experiences such incapacity, Ledgers has the right to terminate the franchise agreement unless the franchisee's executor, personal representative, or guardian seeks a transfer of the franchisee's rights within 60 days of the incapacity. The transfer must be completed within six months of the incapacity, and all monies owed to Ledgers, including the transfer fee, must be paid. Additionally, the transferee must sign the current transfer and release form and meet specific requirements, including completing initial training and entering into a new franchise agreement.

During the period between the franchisee's incapacity and the transfer or termination of the agreement, an interim operator may be appointed, who must also meet certain requirements but is not required to enter into a new franchise agreement. Ledgers is entitled to reimbursement from the franchisee's estate for any reasonable expenses incurred in continuing services, plus 10% of gross revenues for the period they operate or assist in the operation of the franchised business. This clause ensures the continuity of the Ledgers business and protects Ledgers' interests during the transition period.