If Ledgers exercises its right to Interim Remedies, is the franchisee entitled to any compensation?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
impose Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement. If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. Interim Remedies include:
- (a) we may suspend the provision of all technology and software services provided to you pursuant to this Agreement, including any tax, accounting or bookkeeping software and/or website services; and
- (b) we may suspend our ongoing support, and the performance of all other obligations set forth in Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, if Ledgers exercises its right to impose Interim Remedies, the franchisee will not be entitled to any compensation. This includes no repayment, reimbursement, refund, or offsets for any fees, charges, expenses, or losses the franchisee may incur, either directly or indirectly, due to Ledgers's actions.
Interim Remedies that Ledgers may impose include suspending technology and software services, such as tax, accounting, or bookkeeping software and website services. Ledgers can also suspend ongoing support and the performance of all other obligations outlined in Section 3 of the Franchise Agreement.
This means that a Ledgers franchisee could experience a disruption in essential services and support from the franchisor without any recourse for financial losses incurred as a result. The franchisee continues to be bound by the agreement without receiving the full benefits, and the franchisee bears the full financial risk of the disruption. This is a significant risk factor for prospective franchisees to consider.