How is the adjusted book value of assets determined for Ledgers' potential purchase upon termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- At our option, offer to us the right to purchase your furniture, equipment, signage, fixtures, and supplies within thirty (30) days of the date of termination for the 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;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if the franchise agreement is terminated, Ledgers has the option to purchase the franchisee's furniture, equipment, signage, fixtures, and supplies. The purchase price will be based on the adjusted book value of these assets.
The adjusted book value is defined as the undepreciated book value of the assets. This value is determined using the franchisee's most recently filed federal tax return prior to the date of termination or expiration of the franchise agreement.
This means that a prospective Ledgers franchisee should maintain accurate and up-to-date records of asset depreciation on their federal tax returns. This will be the basis for determining the value of these assets should Ledgers choose to purchase them upon termination. It is important to note that Ledgers has the option, but not the obligation, to purchase these assets.