Does the Ledgers FDD state that any party has been convicted of a felony charge alleging fraudulent conversion?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, no party has been convicted of a felony charge alleging fraudulent conversion. Specifically, the FDD states that this applies to Ledgers, its predecessors, individuals identified in Item 2, or any affiliates offering franchises under Ledgers' principal trademark.
In addition to the absence of felony convictions for fraudulent conversion, the FDD also confirms that these parties have not been subject to civil actions alleging violations of franchise, antifraud, or securities laws; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices within the 10 years preceding the application for registration.
This assurance provides prospective Ledgers franchisees with some confidence regarding the background and integrity of the franchisor and its associated parties. It indicates that Ledgers has not been involved in significant legal issues related to financial impropriety or deceptive business practices, which is a positive factor for potential investors.