What are some examples of situations where active operation of a Ledgers franchise is 'not reasonably possible'?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If you abandon the Franchised Business or discontinue the active operation of the Franchised Business for three or more business days, except when active operation is not reasonably possible, such as because of a natural disaster or government order.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the franchise agreement can be terminated if a franchisee abandons or discontinues active operation of the franchised business for three or more business days. However, this does not apply when active operation is not reasonably possible.
The FDD specifically cites two examples of situations where active operation is 'not reasonably possible': a natural disaster or a government order. These events are beyond the franchisee's control and would prevent them from running the business.
It is important to note that the FDD does not provide an exhaustive list of scenarios where active operation might be deemed 'not reasonably possible'. Prospective franchisees should seek clarification from Ledgers regarding other potential situations that might qualify for this exception.