What is the definition of a 'year' for the purpose of calculating Minimum Requirements for a Ledgers franchise?

According to Ledgers' 2025 Franchise Disclosure Document, a 'year' for the purpose of calculating Minimum Requirements is defined as each fiscal year ending on December 31, including any partial year. This definition is important because continuation of territorial rights depends on achieving certain sales growth, and Ledgers franchisees cannot have declining revenue during two consecutive years.

This means that Ledgers franchisees are evaluated on their sales performance based on the calendar year, regardless of when their franchise agreement began. For example, if a franchisee starts operating in July, their first 'year' for Minimum Requirements calculation will be the partial year from July to December 31, and subsequent years will be full calendar years.

If a Ledgers franchisee fails to meet the Minimum Requirements by having declining revenue for two consecutive years, Ledgers reserves the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service marks. This underscores the importance of consistent sales performance for Ledgers franchisees to maintain their territorial rights.