What is the definition of 'Franchise' within the context of the Ledgers release agreement?

According to Ledgers' 2025 Franchise Disclosure Document, a Ledgers franchise grants the franchisee the right to operate a business using Ledgers' system and marks to deliver services within a specific geographic territory for a set term. The franchise relationship is defined as that of an independent contractor, meaning the franchisee is not an employee, partner, or joint venture of Ledgers. The franchisee has sole control over their employees and cannot make commitments that bind Ledgers without prior written consent.

The Franchise Agreement outlines the mutual promises and consideration between Ledgers and the franchisee. Ledgers has developed a system to deliver advisory, compliance, recordkeeping, and tax services, utilizing prescribed marketing techniques and operating procedures. Ledgers seeks candidates who can deliver outstanding client service in a defined territory and are willing to own at least one franchise business. The franchisee, in turn, seeks to use the Ledgers system to profitably deliver an outstanding client experience.

Within the release agreement, 'Franchise' refers to the agreement between the Releasor (likely the franchisee in this context) and Loyalty Business Services LLC, doing business as Ledgers ('Releasee'). The consideration for the release is the execution of a successor Franchise Agreement or other renewal documents, the Releasor's consent to the Releasee's transfer of rights and duties, or the Releasor's consent to the Releasee's assumption of rights and duties under the Franchise Agreement.