What constitutes 'moral turpitude' in the context of actions that could terminate the Ledgers franchise agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement for Cause without notice, and without the opportunity for you to cure. "Cause" means:
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- If you do not attend and pass our Initial Training in accordance with our current passing standards;
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- If you are charged with, indicted for, or convicted of a felony or serious misdemeanor involving moral turpitude;
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- If you violate applicable laws, rules or regulations related to any franchise law, antitrust law, or securities law;
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- If you commit fraud, misappropriation, embezzlement, or unfair and deceptive practices;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the franchise agreement can be terminated without notice or an opportunity to cure if a franchisee is charged with, indicted for, or convicted of a felony or serious misdemeanor involving moral turpitude. The FDD does not define 'moral turpitude.'
Because the Ledgers FDD does not define 'moral turpitude,' prospective franchisees should seek legal counsel to understand what specific actions or crimes would be considered 'moral turpitude' in their jurisdiction. The interpretation of this term can vary by state and legal context.
Understanding this term is crucial, as any such charge, indictment, or conviction could lead to immediate termination of the Ledgers franchise agreement, resulting in the loss of the franchise without any chance to rectify the situation.