Is a Ledgers franchisee allowed to solicit orders from consumers outside of their territory?

According to Ledgers's 2025 Franchise Disclosure Document, franchisees are generally restricted from actively soliciting orders from consumers outside their designated territory. However, they are allowed to accept orders that originate from outside their territory. This policy extends to various channels of distribution, including the Internet, catalog sales, telemarketing, and other direct marketing methods. Despite the restriction on actively soliciting customers outside their territory, Ledgers franchisees can engage in internet and social media marketing, even if such marketing extends beyond their territory, provided they adhere to Ledgers's guidelines.

This policy has important implications for prospective Ledgers franchisees. While franchisees are granted a protected territory where Ledgers promises not to establish another company-owned or franchised location, this protection does not extend to preventing customers from outside the territory from placing orders. The allowance of internet and social media marketing provides franchisees with an avenue to reach potential customers beyond their immediate geographic area, which can be crucial for growth. However, franchisees must be mindful of Ledgers's marketing guidelines to ensure compliance.

Ledgers, its parent company, and its affiliates retain the right to use other distribution channels, such as the Internet, catalog sales, telemarketing, or direct marketing, to solicit or accept customers within a franchisee's territory without compensating the franchisee. However, Ledgers will normally direct inquiries for services from within the franchisee's territory to their franchised business. This reservation of rights by Ledgers and its affiliates underscores the importance of understanding the competitive landscape and potential overlap in marketing efforts.

Furthermore, Ledgers's affiliate, ATAX LLC, which offers similar services, may solicit or accept orders from within a Ledgers franchisee's territory. While Ledgers and ATAX typically target different client bases, the potential for overlap exists, and franchisees should be aware of this internal competition. These stipulations highlight the non-exclusive nature of the territory granted to Ledgers franchisees and the various ways in which Ledgers and its affiliates may operate within or alongside a franchisee's territory.