factual

Does the exercise of Interim Remedies by Ledgers constitute a waiver of any breach by the franchisee?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

If we send you a written notice that you are in default of this Agreement, the Operations Manual, or any other agreement with us, we may elect to immediately impose an interim remedy (the "Interim Remedies"), regardless of whether the default is curable, including the suspension of our obligations under this Agreement. You understand, acknowledge, and agree that our exercise of our right to impose Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement. If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. Interim Remedies include:

  • (a) we may suspend the provision of all technology and software services provided to you pursuant to this Agreement, including any tax, accounting or bookkeeping software and/or website services; and
  • (b) we may suspend our ongoing support, and the performance of all other obligations set forth in Section 3 of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the exercise of Interim Remedies by Ledgers does not constitute a waiver of any breach by the franchisee of any term, covenant, or condition of the Franchise Agreement. Ledgers may elect to immediately impose an interim remedy if a franchisee is in default of the Franchise Agreement, the Operations Manual, or any other agreement with Ledgers. This is regardless of whether the default is curable.

Interim Remedies that Ledgers may impose include suspending the provision of all technology and software services, including any tax, accounting or bookkeeping software and/or website services, and suspending ongoing support and the performance of all other obligations. The FDD states that the right to Interim Remedies is in addition to, and apart from, any other right or remedy Ledgers may have in the Franchise Agreement.

The franchisee is not entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses they may directly or indirectly incur by reason of Ledgers' exercise and/or withdrawal of any Interim Remedy. This means that if Ledgers suspends services or support, the franchisee will not receive any financial compensation for any losses incurred as a result of the suspension.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.