If a Ledgers franchisee abandons the Franchised Business, is this grounds for termination?

According to Ledgers' 2025 Franchise Disclosure Document, abandoning the franchised business is grounds for termination. Specifically, Ledgers can terminate the Franchise Agreement if the franchisee abandons or discontinues active operation of the Franchised Business for three or more business days.

However, there is an exception to this rule. According to the FDD, Ledgers will not terminate the agreement if the active operation is not reasonably possible due to a natural disaster or government order.

This clause protects Ledgers and ensures franchisees actively operate their businesses. For a prospective franchisee, this means they must maintain consistent operation unless prevented by circumstances like natural disasters or government mandates. Abandoning the business without a valid reason can lead to termination of the franchise agreement.