If the Ledgers Franchise Agreement is held by joint tenants, must all tenants join in any transfer?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is held by joint tenants or tenants in common, all joint tenants or tenants in common must join in any transfer of an ownership interest in this Agreement, except any person who is deceased or under a legal disability.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if the Franchise Agreement is held by joint tenants or tenants in common, all such tenants must participate in any transfer of ownership interest. The only exception to this rule is if a tenant is deceased or under a legal disability.
This requirement ensures that all parties with an ownership stake in the Ledgers franchise are in agreement regarding its transfer. This protects the interests of the franchisor and helps to maintain the stability and consistency of the franchise network.
For a prospective Ledgers franchisee, this means that if you plan to co-own the franchise with others as joint tenants or tenants in common, you must ensure that all co-owners are willing and able to participate in any future transfer of the franchise. Failure to do so could complicate or prevent the transfer. It is important to discuss this requirement with any potential co-owners before entering into the Franchise Agreement.