How does Ledgers define the geographic boundaries of a franchisee's territory?

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee's territory is defined as a geographic area typically including a population of 65,000 residents and at least 3,500 businesses, as determined by the U.S. Census Bureau or other reliable mapping data. The specific boundaries of the territory are outlined in Schedule 1 of the Franchise Agreement, and are defined by zip codes, political, or geographic boundaries.

While Ledgers grants a protected territory, it is not an exclusive territory. This means that while Ledgers promises not to establish a company-owned or franchised Ledgers location within the franchisee's territory, franchisees may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Ledgers. Another Ledgers franchisee or affiliate may solicit clients within the franchisee's territory using other channels of distribution, such as the Internet, catalog sales, or telemarketing.

A Ledgers franchisee may not provide services to clients outside of their territory without written permission from Ledgers, which may be granted or denied at Ledgers' sole discretion. If permission is granted, it can be revoked at any time. Furthermore, franchisees must immediately cease providing services to any client located outside their territory if a new franchisee purchases that territory.

Continuation of a franchisee's territorial rights depends on meeting certain minimum requirements, specifically avoiding declining revenue for two consecutive years. Failure to meet these requirements may result in Ledgers establishing a company-owned outlet within the franchisee's territory.