Does the Ledgers Franchise Agreement include a schedule that defines the territory granted to the franchisee?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Ledgers grants to you the right to operate a company ("Franchise Business") using our System and our Marks to deliver Services within the geographic boundaries identified in Schedule 1 (the "Territory") during the Term by and through the Franchisee Business Entity identified on the Summary Page and signature page of this Agreement (or as a sole proprietor or partnership if there is no business entity) and in conformity with the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the Franchise Agreement does include a schedule that defines the territory granted to the franchisee. Specifically, section 1.1.A states that Ledgers grants the franchisee the right to operate within the geographic boundaries identified in Schedule 1, referred to as the "Territory." Furthermore, the table of contents lists "Schedule 1 Territory" and section 1.3 states that Schedule 1 defines the territory by zip codes, political, or geographic boundaries.
While franchisees do receive a protected territory, it is not exclusive. According to section 1.7.B, a protected territory means that Ledgers promises not to establish a company-owned or franchised Ledgers location within the franchisee's geographical area. However, franchisees may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Ledgers.
Section 1.3 notes that a typical territory will include a population of 65,000 residents and at least 3,500 businesses as defined by Ledgers's marketing programs, using data from the U.S. Census Bureau or other reliable mapping data. The franchisee cannot provide services to clients outside their territory without written permission from Ledgers, and this permission can be revoked at any time. Additionally, the franchisee must stop providing services to any client located outside of their territory immediately if a new franchisee purchases that territory.