What activities are considered 'Restricted Activities' that a Ledgers franchisee is prohibited from engaging in during the Restriction Period?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
e adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration;
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- Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee.
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- Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
8.6. Non-Compete and No Solicitation
A. Post-Term.
You will not, during the Term and for a period of two (2) years after expiration or termination of this Agreement ("Restriction Period"), in the Territory or within twenty-five (25) miles of the boundaries of the Territory ("Restricted Market"), own or manage any business that provides prospective clients advisory, compliance, recordkeeping, payroll, or tax services ("Restricted Activities").
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee is restricted from certain activities during the term of the franchise agreement and for a period of two years after the agreement expires or is terminated. This 'Restriction Period' applies within the franchisee's territory or within 25 miles of its boundaries, which is defined as the 'Restricted Market'.
During this Restriction Period, a franchisee cannot own or manage any business that provides advisory, compliance, recordkeeping, payroll, or tax services to prospective clients. This restriction remains in effect even if the franchisee sells their Ledgers franchise business. Additionally, the franchisee is prohibited from directly or indirectly providing these services to any client, unless it is through the Ledgers franchise business.
Furthermore, during the Restriction Period, the franchisee must avoid any intentional conduct that could harm the relationship between existing clients or vendors and the Ledgers franchise business. This non-compete and non-solicitation clause is a standard practice in franchising to protect the franchisor's and other franchisees' investments and goodwill.