What must a Ledgers franchisee do with the Manual and Confidential Information upon termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
8.5. Post Termination Obligations
Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:
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- Return to us or certify destruction of any paper and electronic copies of the Manual and any Confidential Information (retaining only such copies as you need for legal or tax purposes);
6.5. Return
Upon Termination or Expiration of this Agreement, you must destroy any Confidential Information stored in printed or digital form within ten (10) days and provide us with a written certification of destruction. However, you may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must either return to Ledgers or certify the destruction of any paper and electronic copies of the Manual and any Confidential Information. However, the franchisee is allowed to retain copies needed for legal or tax purposes.
According to the FDD, within ten days of termination or expiration, the franchisee must destroy any Confidential Information stored in printed or digital form and provide Ledgers with a written certification of destruction. The information retained for legal, tax, and insurance purposes remains subject to the confidentiality restrictions of the Franchise Agreement.
This obligation is fairly standard in franchising. Franchisors need to protect their proprietary information and trade secrets after a franchise relationship ends. The exception for retaining information for legal and tax purposes is also typical, allowing franchisees to comply with their own obligations even after the franchise terminates. The franchisee must ensure that even retained information is kept confidential.