After the Franchise Agreement terminates, expires, or is not renewed, for how long is a Ledgers franchisee restricted from offering income tax preparation and related business services?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not, directly or indirectly, for a 2-year period after the termination, expiration, or nonrenewal of the Franchise Agreement, including a sale of the franchise or your interest in it, offer income tax preparation and related business services in the Territory or within 25 miles of the boundaries of the Territory, or within 25 miles of any other Ledgers outlet of ours or a franchisee of ours in operation at the time.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee is restricted from offering income tax preparation and related business services for a period of two years after the termination, expiration, or nonrenewal of the Franchise Agreement. This restriction includes a sale of the franchise or the franchisee's interest in it.
The restricted area includes the Territory granted to the franchisee and extends to within 25 miles of the boundaries of that Territory. It also includes any area within 25 miles of any other Ledgers outlet operated by the company or its franchisees at the time of termination.
This non-compete clause prevents former franchisees from directly competing with Ledgers within a defined geographic area for a specified time, protecting Ledgers's market share and brand reputation. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area and offer similar services after leaving the Ledgers system.