What action is Ledgers requiring of the franchisee as a condition to signing the Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule 3- Telephone Number Assignment
THIS TELEPHONE NUMBER ASSIGNMENT AGREEMENT is made between Loyalty Business Services LLC doing business as Ledgers ("Franchisor", "we", "us", or "our") and the franchisee named below ("Franchisee", "you" or "your").
BACKGROUND
- A. The parties are entering into a Franchise Agreement ("Agreement").
- B. As a condition to signing the Franchise Agreement, we have required that you appoint us Attorney in Fact, to take effect upon the expiration or termination of the Agreement, as to the telephone numbers, listings, and advertisements (collectively "Listings") relating to your Franchise.
TELEPHONE NUMBER ASSIGNMENT
Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, Franchisee will pay all amounts owed in connection with the Listings, and to immediately at Franchisor's request,
- A. take any other action as may be necessary to transfer the Listings to Franchisor or Franchisor's designated agent,
- B. install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings;
- C. disconnect the Listings; and/or
- D. cooperate with Franchisor or its designated agent in the removal or relisting of the Listings
Franchisor may require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all Listings.
Appointment as Attorney in Fact.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, as a condition to signing the Franchise Agreement, Ledgers requires the franchisee to appoint Ledgers as their Attorney in Fact regarding the telephone numbers, listings, and advertisements related to the franchise. This appointment becomes effective upon the expiration or termination of the Franchise Agreement.
This requirement means that upon termination or expiration of the agreement, the franchisee's right to use the Listings will end. The franchisee is obligated to pay all outstanding amounts connected to the Listings. Additionally, at Ledgers's request, the franchisee must take necessary actions to transfer the Listings to Ledgers or their designated agent. This includes installing an intercept message on the Listings, disconnecting the Listings, and cooperating in the removal or relisting of the Listings.
Ledgers retains the right to demand that the franchisee "port" or transfer all Listings to Ledgers or an approved call routing and tracking vendor. This ensures that Ledgers maintains control over the phone numbers and advertising associated with the franchise, even after the franchisee is no longer operating the business. This is likely to ensure brand consistency and prevent a former franchisee from diverting customers or unfairly competing with the Ledgers system after the agreement ends.