What constitutes a failure to meet the 'Minimum Requirements' for a Ledgers franchise territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuation of your territorial rights depends on achieving a certain sales growth. You cannot have declining revenue during two consecutive years ("Minimum Requirements"). A year will include each fiscal year (including any partial year) ending on December 31. If you fail to meet the Minimum Requirements, then we reserve the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service Marks.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee fails to meet the minimum requirements for their territory if they experience declining revenue for two consecutive years. The FDD specifies that a 'year' in this context refers to each fiscal year, including any partial year, ending on December 31.
If a Ledgers franchisee fails to meet this minimum requirement, the franchisor reserves the right to establish a company-owned outlet within the franchisee's territory. This outlet would sell the same or similar goods or services under the same or similar trademarks or service marks.
This stipulation highlights the importance of consistent sales growth for Ledgers franchisees. The risk of losing territorial protection and facing direct competition from a company-owned outlet should incentivize franchisees to actively manage and grow their revenue year over year. Prospective franchisees should carefully consider their ability to achieve and maintain sales growth within their designated territory before investing in a Ledgers franchise.