Is a Ledgers franchisee prohibited from making disparaging remarks after termination?

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee is prohibited from making disparaging comments after the termination or expiration of the franchise agreement. Specifically, upon termination or expiration of the Agreement, the franchisee must refrain from making disparaging comments in any form about Ledgers or its current and former employees, agents, members, directors, or franchisees.

This clause is fairly standard in franchise agreements to protect the brand's reputation even after a franchisee leaves the system. It means a former Ledgers franchisee cannot publicly criticize the brand, its management, or other franchisees. This restriction aims to prevent damage to the brand's image and maintain goodwill.

For a prospective Ledgers franchisee, this implies that even after leaving the franchise system, they must remain positive or neutral in their public statements about the brand. Failure to comply could potentially lead to legal action by Ledgers. Franchisees should carefully consider this obligation, as it extends beyond the term of the franchise agreement.