What happens if a Ledgers franchisee fails to comply with applicable laws and regulations?

You must operate the Franchised Business in strict conformity with all applicable federal, state, and local laws, ordinances and regulations. These laws, ordinances and regulations vary from jurisdiction to jurisdiction and are amendable and may be implemented or interpreted in different manners over time. It is solely your responsibility to apprise yourself of the existence and requirements of all laws, ordinances, and regulations applicable to the Franchised Business and to adhere to them and to the then-current implementation or interpretation of them.

We may terminate this Agreement for Cause without notice, and without the opportunity for you to cure. "Cause" means:

• 1. If you violate applicable laws, rules or regulations related to any franchise law, antitrust law, or securities law;

In operating this franchise, you will be subject to laws and regulations from the IRS and states on obtaining the ability to e-file tax returns, due diligence, recordkeeping, privacy, and other laws.

You will also be subject to laws concerning administrative, technological and legal protections to safeguard customer data.

Certain states also regulate tax courses and require registration of such courses.

And certain states, such as California, Maryland, and Oregon, require training and licensure in order to offer tax preparation services. You should investigate the application of these laws further.

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)