Can a Ledgers franchisee offer competitive services during the term of the Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
For the duration of your Franchise Agreement, you may not offer competitive services in the states and territories of the United States unless you receive our prior written consent.
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 the 2025 Ledgers Franchise Disclosure Document, a franchisee is restricted from offering competitive services during the term of the Franchise Agreement without prior written consent from Ledgers. Specifically, this restriction applies to offering competitive services within the states and territories of the United States.
After the termination, expiration, or nonrenewal of the Franchise Agreement, including a sale of the franchise, the franchisee is further restricted from offering income tax preparation and related business services. This post-term restriction applies for a 2-year period within the Territory or within 25 miles of the boundaries of the Territory, or within 25 miles of any other Ledgers outlet in operation at the time.
This non-compete clause ensures that franchisees do not directly compete with Ledgers or other franchisees, protecting the brand's market share and the investment of other franchisees. However, the restrictions are limited to a specific geographic area and a defined period after the agreement ends, allowing former franchisees to eventually pursue similar business ventures outside the restricted zone.