What constitutes a violation of federal and state law regarding the Ledgers Disclosure Document?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Michigan requires that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
New York requires that we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
If we do not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580 and the appropriate state agency listed on Exhibit D.
The franchisor is Loyalty Business Services LLC located at 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452. Its telephone number is 833-920-0735.
Issuance date: April 29, 2025;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a violation of federal and state law may occur if the Disclosure Document is not delivered on time, or if it contains a false or misleading statement, or a material omission. The FDD must be provided to prospective franchisees within specific timeframes before signing a binding agreement or making a payment. For instance, Michigan requires delivery at least 10 business days prior, while New York requires it at the earlier of the first personal meeting or 10 business days before signing or payment. Iowa mandates delivery at the earlier of the first personal meeting or 14 calendar days before signing or payment.
If Ledgers fails to provide the Disclosure Document within these specified timeframes or includes false, misleading, or omits important information, it could be in violation of both federal and state laws. Such violations should be reported to the Federal Trade Commission (FTC) in Washington, DC, and the appropriate state agency listed in Exhibit D of the FDD.
This requirement ensures that prospective franchisees have adequate time and accurate information to make informed decisions. The consequences of non-compliance underscore the importance of Ledgers' adherence to disclosure requirements and the franchisee's right to accurate and timely information.