Who is a Ledgers franchisee prohibited from making disparaging comments about after termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:
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- Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee is prohibited from making disparaging comments in any form about Ledgers or its current and former employees, agents, members, directors, or franchisees.
This obligation extends beyond the term of the agreement, meaning that even after a franchisee has left the Ledgers system, they must refrain from making negative remarks about the brand or its people. This restriction aims to protect the reputation and goodwill of the Ledgers brand and its stakeholders.
For a prospective franchisee, this means understanding that their speech regarding Ledgers is limited even after they are no longer associated with the company. Failure to comply with this provision could potentially lead to legal repercussions, as it is a binding agreement within the franchise contract. This type of clause is relatively common in franchise agreements to protect the brand's image and maintain positive relationships within the franchise network.