What other covenants in the agreement require performance by a Ledgers franchisee after they are no longer a franchisee?
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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- Cease to operate the Franchised Business;
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- Discontinue using any of our "Marks";
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- Cancel all fictitious name filings which you use that includes any of our Marks;
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- Pay to us all amounts owing to us;
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- Reimburse Clients for any fees paid for services not yet rendered;
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- If requested by us, transfer to us all telephone numbers used in relation to this Franchise Business by executing our then current form, and deliver to us written proof of transfer;
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- At our option, and upon our request, use your best efforts to assist in transferring the lease of the facility of your Franchised Business, whether it be through a new lease or assignment;
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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);
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- Adhere to the post-term duties stated in Section 8.6 entitled Non-Compete and No Solicitation and any other duties that require your performance after you are no longer a franchisee.
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- At our option, offer to us the right to purchase your furniture, equipment, signage, fixtures, and supplies within thirty (30) days of the date of termination for the adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration;
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- Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee.
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- Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, there are several obligations that a franchisee must continue to adhere to even after the termination or expiration of their franchise agreement. These post-termination obligations are detailed in Section 8.5 of the agreement.
Upon termination or expiration of the Ledgers Franchise Agreement, a franchisee must cease operating the franchised business and discontinue using any of Ledgers' marks. They are also required to cancel any fictitious name filings that include Ledgers' marks and pay all outstanding amounts owed to Ledgers. Additionally, franchisees must reimburse clients for any fees paid for services that have not yet been rendered. If requested by Ledgers, the franchisee must transfer all telephone numbers used in relation to the franchise business and assist in transferring the lease of the business facility.
Furthermore, the franchisee is obligated to return or certify the destruction of all paper and electronic copies of the manual and any confidential information, with exceptions only for copies needed for legal or tax purposes. They must also adhere to the non-compete and no-solicitation duties outlined in Section 8.6 of the agreement, and refrain from making disparaging comments about Ledgers or its current and former employees, agents, members, directors, or franchisees. Ledgers also has the option to purchase the franchisee's furniture, equipment, signage, fixtures, and supplies at the adjusted book value within thirty days of termination. Finally, the franchisee must abide by any other covenant in the agreement that requires performance after they are no longer a franchisee.