What constitutes 'Minimum Requirements' for Ledgers franchisees regarding revenue?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuation of your territorial rights depends on achieving a certain 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 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 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a key 'Minimum Requirement' for franchisees is maintaining consistent revenue growth. Specifically, territorial rights are contingent upon avoiding declining revenue for two consecutive fiscal years, with each fiscal year ending on December 31.
If a Ledgers franchisee fails to meet this minimum revenue requirement, Ledgers reserves the right to establish a company-owned outlet within the franchisee's territory. This outlet would offer similar goods or services under the same or similar trademarks or service marks, directly competing with the franchisee's business.
This stipulation underscores the importance of sustained business performance for Ledgers franchisees. It also highlights a potential risk: failure to maintain revenue growth could lead to direct competition from the franchisor within the franchisee's own territory. Prospective franchisees should carefully consider their ability to consistently grow revenue and the potential impact of market fluctuations on their business performance.