What happens if a Ledgers franchisee does not designate a Business Manager?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
l Information to any other person or entity or use it for the benefit of any other person or business.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must participate personally in the day-to-day operation of your Franchised Business unless we permit otherwise in writing. You must devote your time, attention and best efforts to performing your obligations under the Franchise Agreement.
You must designate a Business Manager. If you are an individual, then you must serve as Business Manager. You must inform us in writing of the identity of your Business Manager, furnish information to us regarding the candidate's background, experience and credentials, and secure our advance written approval before you engage him or her. We will not unreasonably withhold or deny our approval. Your Business Manager must have complete decision-making authority with regard to your Franchised Business and must have authority to act on your behalf in all respects under the Franchise Agreement. Your Business Manager is the only individual with whom we will be required to communicate when we seek to communicate with you. Your Business Manager must complete the Initial Training Program to our satisfaction.
If you desire to designate a successor or replacement Business Manager, then you must notify us in writing;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee must personally operate the franchise unless they designate a Business Manager who attends and successfully completes the Initial Franchisee Training course and is approved by Ledgers. If the franchisee is an individual, they must serve as the Business Manager.
If a franchisee chooses to designate a Business Manager, they must inform Ledgers in writing of the identity of their Business Manager, provide information regarding the candidate's background, experience, and credentials, and secure Ledgers's advance written approval. Ledgers states that they will not unreasonably withhold or deny approval. The Business Manager must have complete decision-making authority regarding the franchised business and the authority to act on the franchisee's behalf in all respects under the Franchise Agreement.
The Business Manager is the only individual with whom Ledgers will be required to communicate when they seek to communicate with the franchisee. Furthermore, the Business Manager must sign an employment contract with the franchisee containing confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against the franchisee or Ledgers.