Is a Ledgers franchisee allowed to make disparaging comments about Ledgers after termination?

According to Ledgers's 2025 Franchise Disclosure Document, franchisees are prohibited from making disparaging comments about the company after the termination or expiration of their franchise agreement. Specifically, this restriction extends to comments about Ledgers itself, as well as its current and former employees, agents, members, directors, or franchisees. This obligation is part of the broader set of post-termination duties that a franchisee must adhere to once they are no longer part of the Ledgers system.

This clause means that even after a franchisee's relationship with Ledgers ends, they cannot publicly criticize or make negative statements about the brand or its people. This kind of clause is relatively common in franchise agreements, designed to protect the franchisor's reputation and brand image. It aims to prevent former franchisees from damaging the brand through negative publicity or word-of-mouth.

For a prospective Ledgers franchisee, this implies that they must carefully consider their long-term commitment to the brand. Even if their experience with Ledgers sours, they will be contractually obligated to refrain from making disparaging remarks. Violation of this clause could potentially lead to legal action by Ledgers. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the franchise agreement.