Can a Ledgers franchisee provide services to clients outside of their designated territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not provide Services to Clients outside of your Territory without our written permission. We may grant or deny permission in our sole judgment. In no event will you be permitted to offer Services to any Client within a territory owned by another unit franchisee. Should we grant permission, it will be freely revocable by us for any reason or no reason at all. Further, you must immediately stop providing Services to any Client located outside of your Territory immediately upon notice that a new franchisee has purchased such territory. Furthermore, if permission is granted, you must immediately stop providing Services to any such Client.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, a franchisee is generally restricted from providing services to clients outside of their designated territory without written permission from Ledgers. Ledgers retains the sole discretion to grant or deny such permission. However, under no circumstances can a franchisee offer services to a client within another franchisee's territory.
Even if permission is granted by Ledgers to serve clients outside of the franchisee's territory, Ledgers can revoke this permission at any time, for any reason. Furthermore, the franchisee must immediately cease providing services to any client located outside their territory upon notification that a new franchisee has purchased that territory.
This policy ensures that each Ledgers franchisee has a protected area of operation, while also allowing for flexibility in certain situations with the franchisor's approval. However, it also introduces a risk that a franchisee could lose clients located outside their territory if Ledgers revokes permission or if a new franchise is established in that area.