Can Ledgers engage in business activities anywhere if they are not expressly prohibited by the Ledgers Franchise Agreement?

According to Ledgers's 2025 Franchise Disclosure Document, Ledgers, its parent company, and its affiliates retain all rights not explicitly granted to the franchisee in the Franchise Agreement. This means Ledgers has broad latitude to engage in business activities, including those that might compete with a franchisee's business.

Specifically, Ledgers can engage in any business activities not expressly prohibited by the Franchise Agreement, and it can do so anywhere. This includes using various channels of distribution like the Internet, catalog sales, and telemarketing to solicit customers within a franchisee's territory without compensating the franchisee. However, Ledgers states that they will normally direct inquiries for services from within your Territory to your Franchised Business.

This broad reservation of rights has significant implications for prospective Ledgers franchisees. While franchisees are granted a protected territory, Ledgers retains considerable freedom to operate and expand its business in ways that could impact franchisees. It is important for potential franchisees to carefully review the Franchise Agreement to understand what activities are expressly prohibited and to assess the potential impact of Ledgers's reserved rights on their investment.