Can Ledgers franchisees sell goods or services that have not been authorized or approved by the franchisor?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ture Page to the Franchise Agreement. No change to the owners or ownership percentages are permitted without our prior written consent.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may offer for sale through your Franchised Business only a business advisory, bookkeeping, payroll, and income tax preparation as specified by us and such products and services that we have approved in writing. We may designate products or services as optional or mandatory. You may not sell any goods or services that we have not authorized or approved.
You may offer your services to any customers consistent with your territorial rights.
You are required to sell all goods or services that we authorize, unless prohibited by your applicable local law, or approved by us. We may change the types of authorized goods and services sold by franchisees. There are no limits on our right to make changes to the authorized goods and services sold by franchisees;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, franchisees are explicitly restricted from selling any goods or services that have not been authorized or approved by Ledgers. The FDD specifies that franchisees may only offer business advisory, bookkeeping, payroll, and income tax preparation services, along with other products and services that Ledgers has approved in writing. Ledgers retains the right to designate products or services as either optional or mandatory for franchisees.
Ledgers also has the authority to change the types of authorized goods and services sold by franchisees, but they cannot fundamentally alter the nature of the franchise. Furthermore, Ledgers can revoke approval of previously approved goods or services, and franchisees must immediately cease selling those revoked items.
This restriction ensures that Ledgers maintains control over the brand's offerings and quality standards. For a prospective franchisee, this means they must adhere strictly to the approved list of services and products, and they cannot introduce new offerings without prior written consent from Ledgers. This could limit a franchisee's ability to adapt quickly to local market demands or to capitalize on emerging service trends without franchisor approval.