What constitutes a 'year' for the purpose of evaluating Minimum Requirements for a Ledgers franchise?
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 'year' for evaluating the Minimum Requirements is defined as each fiscal year, including any partial year, ending on December 31. This definition is important because the continuation of a franchisee's territorial rights depends on achieving certain growth, and a franchisee cannot have declining revenue during two consecutive years.
This means that Ledgers franchisees are evaluated on a calendar year basis, regardless of when their franchise agreement began. For example, if a franchisee starts in July, their first 'year' for Minimum Requirements purposes will be the partial year ending on December 31 of that same year.
If a Ledgers franchisee fails to meet the Minimum Requirements, Ledgers reserves the right to establish a company-owned outlet selling similar services under similar trademarks. This underscores the importance of understanding and meeting the Minimum Requirements to maintain the exclusive rights to the territory.