What is the definition of 'insolvent' in the context of Ledgers franchise termination?

According to the 2025 Ledgers Franchise Disclosure Document, being 'insolvent' is grounds for termination of the franchise agreement. The FDD defines 'insolvent' as being unable to pay your bills in the ordinary course as they become due.

For a prospective Ledgers franchisee, this means that if you are unable to meet your financial obligations as they come due, Ledgers has the right to terminate your franchise agreement. This could occur if the franchisee's business is not generating enough revenue to cover expenses, or if the franchisee has taken on too much debt.

It is important for a prospective Ledgers franchisee to carefully consider their financial situation and ensure that they have sufficient capital to operate the franchise successfully. Franchisees should create a detailed business plan with realistic revenue projections and expense budgets. They should also maintain a strong credit rating and avoid taking on excessive debt. If a franchisee experiences financial difficulties, they should immediately contact Ledgers to discuss possible solutions.