Will a Ledgers franchisee receive an exclusive territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a company owned or franchised Ledgers location.
You and other franchisees may not solicit (but may accept) orders from consumers outside of your Territory, including through the use of other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, but you may engage in internet and social media marketing pursuant to our guidelines which such marketing may extend outside your Territory.
Continuation of your territorial rights depends on achieving a certain sales growth. You cannot have declining revenue during two consecutive years ("Minimum Requirements"). A year will include each fiscal year (including any partial year) ending on December 31. If you fail to meet the Minimum Requirements, then we reserve the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service Marks.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. Instead, Ledgers franchisees are granted a "protected territory," which is defined as a geographical area where Ledgers promises not to establish another company-owned or franchised Ledgers location. The territory is defined by zip codes, natural, or political boundaries and will normally include a minimum population of approximately 65,000 residents.
Even within this protected territory, Ledgers franchisees may face competition from other franchisees, outlets that Ledgers owns, other distribution channels, or competitive brands that Ledgers controls. Ledgers, its parent company, and affiliates retain the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within a franchisee's territory without compensating the franchisee. They can also engage in transactions with other businesses, even competitors, which may have competing outlets within the franchisee's territory, although Ledgers will not convert any acquired business in your Territory to a franchise using their primary trademarks during the Term of your Franchise Agreement.
Franchisees are permitted to accept orders from consumers outside their territory but are restricted from actively soliciting them, with the exception of internet and social media marketing, which may extend outside the territory according to Ledgers's guidelines. The continuation of territorial rights depends on achieving certain sales growth, requiring that franchisees do not have declining revenue for two consecutive years, with each fiscal year ending on December 31. Failure to meet these minimum requirements could result in Ledgers establishing a company-owned outlet in the territory.
Ledgers's affiliate, ATAX LLC, also offers similar services and franchise opportunities, potentially leading to competition within a Ledgers franchisee's territory, as ATAX franchisees may solicit or accept orders from within the same area. Ledgers retains the sole decision-making power in conflicts regarding territory, customers, and franchisor support between the franchisor and franchisees, and between franchisees of each system.