If the Ledgers franchisee is an individual, who must serve as the Business Manager?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate a Business Manager. If you are an individual, then you must serve as Business Manager. You must inform us in writing of the identity of your Business Manager, furnish information to us regarding the candidate's background, experience and credentials, and secure our advance written approval before you engage him or her. We will not unreasonably withhold or deny our approval. Your Business Manager must have complete decision-making authority with regard to your Franchised Business and must have authority to act on your behalf in all respects under the Franchise Agreement. Your Business Manager is the only individual with whom we will be required to communicate when we seek to communicate with you. Your Business Manager must complete the Initial Training Program to our satisfaction.
If you desire to designate a successor or replacement Business Manager, then you must notify us in writing; identify your proposed successor Business Manager and the reason that your predecessor Business Manager ceased to serve; furnish us with all information we may reasonably request regarding the proposed successor; and, obtain our advance written approval, which we will not unreasonably delay or deny.
You and any Business Manager must pass a background check. However, your Designated Manager is not required to have an equity interest in the franchisee, if it is an entity.
All owners of this franchise must guarantee the obligations under the Franchise Agreement. However, your spouse is not required to guarantee your performance under the Franchise Agreement. This means your spouse is not bound by their own personal guaranty, duty of confidentiality or duty not to compete; however, that does not mean you can circumvent your obligations by sharing our know-how with your spouse (or any family member) nor assist them in competing with us. Furthermore, your Business Manager must sign an employment contract with you containing confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against you or us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if a franchisee is an individual, they are required to serve as the Business Manager for their franchise. However, Ledgers may permit otherwise in writing, allowing the franchisee to designate someone else as the Business Manager.
The Business Manager has complete decision-making authority regarding the franchised business and can act on behalf of the franchisee in all respects under the Franchise Agreement. Ledgers will communicate primarily with the Business Manager. The Business Manager must also complete the initial training program to Ledgers' satisfaction.
If a franchisee wishes to change the Business Manager, they must notify Ledgers in writing, provide information about the proposed successor, and obtain Ledgers' written approval, which Ledgers will not unreasonably delay or deny. Both the franchisee and any Business Manager must pass a background check. The Business Manager is also required to sign an employment contract with the franchisee that includes confidentiality requirements and, where legally permissible, a covenant not to solicit customers or compete against Ledgers.