What is the Ledgers franchisee's obligation regarding the maintenance of the facility?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
1.4. Facility
A. Initial Location
You must begin operations and be open for business no later than twelve (12) months from the Effective Date. You may operate your Ledgers office from your home provided that you maintain a virtual office to meet clients as required, or you can operate from a commercial office location within your Territory. If you fail to open within twelve (12) months of the Effective Date, then we can terminate without any refund to you.
B. Reserved
Use.
Tenant is a franchisee of Franchisor.
The Leased Premises shall be used only for the operation of an Ledgers office (or any name authorized by Franchisor).
Notice of Default and Opportunity To Cure.
Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within 10 days after the expiration of the period in which Tenant may cure the Default.
Termination of Lease.
Landlord shall copy Franchisor on any notice of termination of the Lease.
If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease, subject to Landlord's approval in its reasonable discretion.
To exercise this option, Franchisor must notify Landlord within 10 days after Franchisor receives notice of the termination of the Lease.
Termination of Franchise Agreement.
If the Franchise Agreement between Franchisor and Tenant is terminated during the term of the Lease, then upon the written request of Franchisor, Tenant shall assign the Lease to Franchisor, provided that any such proposed assignment shall be subject to Landlord's approval in its reasonable discretion and must be exercised within 10 days after termination of the Franchise Agreement.
At our option, and upon our request, use your best efforts to assist in transferring the lease of the facility of your Franchised Business, whether it be through a new lease or assignment;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
The 2025 Ledgers Franchise Disclosure Document outlines some facility-related obligations for franchisees. Specifically, franchisees must begin operations within twelve months of the agreement's effective date. They can operate from home with a virtual office or from a commercial location within their territory. Failure to open within the stipulated timeframe allows Ledgers to terminate the agreement without any refunds to the franchisee.
Additionally, if a franchisee leases a commercial space, the lease agreement may include a Lease Rider that involves Ledgers. This rider stipulates that the landlord must provide Ledgers with copies of any default notices given to the franchisee and allows Ledgers the option to cure the default within 10 days after the franchisee's cure period expires. The landlord must also copy Ledgers on any lease termination notices.
Furthermore, if the lease is terminated due to the franchisee's default, Ledgers has the option to enter into a new lease with the landlord under the same terms, subject to the landlord's approval. Ledgers must notify the landlord of this intention within 10 days of receiving the termination notice. If the Franchise Agreement is terminated, the franchisee must assign the lease to Ledgers upon Ledgers' written request, subject to the landlord's approval, and this must occur within 10 days of the Franchise Agreement termination.
Upon termination or expiration of the franchise agreement, the franchisee must assist in transferring the facility lease if requested by Ledgers, whether through a new lease or assignment. These provisions ensure Ledgers has some control over the leased premises and can continue operations if a franchisee defaults or the agreement is terminated.