What form of disparaging comments is a Ledgers franchisee prohibited from making after termination?

According to Ledgers' 2025 Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, a franchisee is prohibited from making disparaging comments in any form about Ledgers or its current and former employees, agents, members, directors, or franchisees.

This restriction means that a former Ledgers franchisee cannot make negative or critical statements, whether written, verbal, or otherwise communicated, about the brand or anyone associated with it. This includes comments made in person, online (such as on social media or review sites), or through any other medium. The purpose of this clause is likely to protect Ledgers' reputation and goodwill, even after a franchisee has left the system.

For a prospective franchisee, this obligation is important to consider. While it's relatively common for franchise agreements to include non-disparagement clauses, the breadth of the restriction can vary. In Ledgers' case, the prohibition extends to comments about a wide range of individuals connected to the company. A franchisee should understand that even after their relationship with Ledgers ends, they must refrain from making any negative public statements about the franchise or its people.

Failure to comply with this provision could potentially lead to legal action by Ledgers. Franchisees should carefully weigh this restriction and ensure they are comfortable with it before entering into the agreement.