Is a Ledgers franchisee required to assist in transferring the lease of the facility upon termination?

According to Ledgers's 2025 Franchise Disclosure Document, a franchisee may be required to assist in transferring the lease of their business facility upon termination or expiration of the franchise agreement. Specifically, Ledgers has the option to request that the franchisee use their best efforts to assist in transferring the lease, whether through a new lease or an assignment. This assistance is required if Ledgers requests it.

This obligation is part of the franchisee's post-termination duties. In addition to assisting with the lease transfer, the franchisee must also cease operating the franchised business, discontinue using Ledgers's marks, cancel any fictitious name filings that include Ledgers's marks, pay all amounts owed to Ledgers, and reimburse clients for any fees paid for services not yet rendered. The franchisee must also transfer all telephone numbers used in connection with the franchise business to Ledgers if requested.

Furthermore, Ledgers has the option to purchase the franchisee's furniture, equipment, signage, fixtures, and supplies within 30 days of termination for the adjusted book value. The adjusted book value is defined as the undepreciated book value of the assets on the franchisee's most recently filed federal tax return prior to the date of termination or expiration. The franchisee must also adhere to non-compete and non-solicitation duties and refrain from making disparaging comments about Ledgers or its employees, agents, members, directors, or franchisees.

If the franchisee's lease agreement contains a clause addressing the termination of the franchise agreement, the franchisee may be required to assign the lease to Ledgers upon Ledgers's written request. This assignment is subject to the landlord's approval, which must be exercised within 10 days after the termination of the Franchise Agreement. This clause ensures that Ledgers has the option to continue operating at the location or transfer the lease to another franchisee, minimizing disruption to the business and preserving the brand's presence in the territory.