Am I required to share client data without consent within my Ledgers franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ly, you must send to us the reports in the following table:
| Name of Report | When Due |
|---|---|
| Monthly Royalty Report | By the 10th day following the end of each month |
| Annual Budget | January 15 of each year. |
| Annual Profit & Loss | By May 31 of each year as to income and |
| Statement and Balance Sheet | expenses incurred in the prior year |
B. Independent Access to Information.
You will allow us to have independent access to the information that will be generated or stored in your computer system or remotely by online cloud storage, arising out of or related to the Franchise Business, which includes prospect, financial, and operational information. We will provide an engagement letter and consent form for use in your Franchised Business. It is your responsibility to comply with the law in determining the desire and scope of a Clients consent to share Client data and to refrain from sharing any data without consent.
C.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees are responsible for complying with laws regarding client data and must obtain client consent before sharing data. Ledgers is granted independent access to information generated or stored in the franchisee's computer system or online cloud storage related to the franchise business, including prospect, financial, and operational information. Ledgers will provide an engagement letter and consent form for use in the franchised business.
Ledgers also reserves the right to share performance data of a franchisee's business with individuals and agents who need it to provide assistance to Ledgers or to comply with regulatory requirements. This performance data is considered Confidential Information. Franchisees must store Confidential Information securely, whether physically or electronically, and must follow all regulatory and legal requirements for the protection of consumer data and tax preparer data.
While Ledgers has access to certain data and may share performance data, the franchisee is ultimately responsible for ensuring compliance with data protection laws and obtaining the necessary client consent before sharing any client data. This means a Ledgers franchisee needs to implement robust systems for managing client consent and data privacy to avoid legal issues. The franchisee must notify Ledgers if Confidential Information is lost or stolen, regardless of fault.
In practice, this means that while Ledgers can access a franchisee's business data, the franchisee is the first line of defense in protecting client data and adhering to privacy laws. A prospective franchisee should clarify with Ledgers what specific data they will have access to, how it will be used, and what support Ledgers provides to ensure compliance with data protection regulations.