If a Ledgers franchisee abandons the Franchised Business, is that a curable or non-curable default?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If you abandon the Franchised Business or discontinue the active operation of the Franchised Business for three or more business days, except when active operation is not reasonably possible, such as because of a natural disaster or government order.
8.9. Interim Remedies
If we send you a written notice that you are in default of this Agreement, the Operations Manual, or any other agreement with us, we may elect to immediately impose an interim remedy (the "Interim Remedies"), regardless of whether the default is curable, including the suspension of our obligations under this Agreement. You understand, acknowledge, and agree that our exercise of our right to
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, if a franchisee abandons the franchised business or discontinues active operation for three or more business days, it constitutes a non-curable default, except in situations where active operation is not reasonably possible due to events like natural disasters or government orders.
This means Ledgers can terminate the Franchise Agreement immediately without providing an opportunity for the franchisee to correct the abandonment. This is a significant risk for franchisees, as any prolonged closure, even if unintended, could lead to termination of the franchise.
In the event of such a default, Ledgers may also elect to immediately impose an interim remedy, regardless of whether the default is curable, including the suspension of their obligations under the agreement. This could further complicate the franchisee's ability to resume operations and potentially lead to additional financial strain. Franchisees should carefully consider the implications of this provision and ensure they have plans in place to prevent any prolonged interruption of business operations.