What happens if a Ledgers franchisee becomes insolvent?

According to Ledgers' 2025 Franchise Disclosure Document, if a franchisee becomes insolvent, meaning they are unable to pay their bills in the ordinary course as they become due, Ledgers has the right to terminate the Franchise Agreement.

This is listed as one of several conditions that allows Ledgers to terminate the agreement without providing the franchisee an opportunity to cure the issue. Other conditions include making a material misstatement of fact on a Biographical Information Form, refusing to completely fill out a requested form, having a final judgment of record against the franchisee that remains unsatisfied for 30 days or longer, failure to begin the transfer process within 60 days of death or incapacity, or abandoning the franchised business for three or more business days.

Upon termination of the Franchise Agreement, Ledgers is not obligated to return or refund any fees to the franchisee. The franchisee also has post-termination obligations that they must adhere to.