According to Ledgers's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from using Confidential Information in a competing business. The FDD defines "Confidential Information" as non-public, sensitive, or proprietary material related to the Ledgers Franchise System, the franchisee's relationship with Ledgers, or the Franchise Business itself, regardless of whether it's provided by Ledgers or the franchisee. This includes client lists, performance data, and reports.

The franchise agreement states that a Ledgers franchisee may only use Confidential Information to perform their obligations under the agreement and must avoid using it for their own benefit or to the detriment of Ledgers. The agreement specifically states that Confidential Information cannot be used in a competing business that is detrimental to Ledgers.

This restriction is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage. The franchisee is also obligated to store Confidential Information securely, whether physically or electronically, and must comply with all regulatory and legal requirements for protecting consumer and tax preparer data. Furthermore, the franchisee must notify Ledgers if any Confidential Information is lost or stolen, regardless of fault.