According to Ledgers's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from using Confidential Information for their own benefit. Confidential Information is defined broadly as any non-public, sensitive, or proprietary material related to the Ledgers Franchise System, the franchisee's relationship with Ledgers, or the Franchise Business itself. This includes client lists, performance data, and reports.

The franchise agreement states that a franchisee may only use Confidential Information to perform their obligations under the agreement. This means that any use of this information must directly relate to operating the Ledgers franchise as intended and in accordance with Ledgers's standards. The agreement specifically prohibits using Confidential Information in a way that benefits the franchisee personally or harms Ledgers.

This restriction is further reinforced by the explicit statement that Confidential Information cannot be used in a competing business that is detrimental to Ledgers. This clause is designed to prevent franchisees from leveraging their access to sensitive business data and client information to start or support a competing venture. This restriction remains in place even after the franchise agreement terminates, with specific instructions on the destruction or retention (for legal/tax purposes) of confidential information.