What copies of the Manual and Confidential Information can a Ledgers franchisee retain after termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:
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- Return to us or certify destruction of any paper and electronic copies of the Manual and any Confidential Information (retaining only such copies as you need for legal or tax purposes);
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must return or certify the destruction of all paper and electronic copies of the Manual and any Confidential Information. However, the franchisee is permitted to retain copies needed for legal or tax purposes.
This means that while Ledgers requires franchisees to generally dispose of proprietary information after the agreement ends, they acknowledge that franchisees may have a legitimate need to keep certain records for compliance reasons.
Even when retaining information for legal or tax purposes, the FDD states that the information remains subject to the confidentiality restrictions outlined in the original agreement. This implies that the franchisee cannot use this information for competitive purposes or disclose it to unauthorized parties, even after the franchise relationship has ended.