If a Ledgers franchisee resides in New York, does the State Addendum apply?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this State Law Addendum to Franchise Disclosure Document and Franchise Agreement ("State Addendum") apply only to those persons residing or operating a Ledgers Franchised Business in the following states: Michigan, California, Illinois, Indiana, Maryland, Minnesota, New York, Rhode Island, Virginia, or Wisconsin.
CALIFORNIA
As to franchises governed by the California Franchise Investment Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the State Addendum applies to individuals residing or operating a Ledgers franchise in New York. The FDD specifies that the provisions outlined in the State Law Addendum to the Franchise Disclosure Document and Franchise Agreement are applicable to those operating a Ledgers Franchised Business in New York, among other states.
This means that if a prospective franchisee lives in New York or plans to operate their Ledgers franchise there, the modifications and stipulations within the New York State Addendum will take precedence over conflicting terms in the standard Franchise Agreement and Disclosure Document. These modifications are designed to ensure compliance with New York franchise laws and to protect the rights of franchisees within the state.
Specifically, the New York addendum includes additional information for the cover page of the Franchise Disclosure Document, emphasizing the availability of information comparing franchisors and cautioning that state registration does not equate to endorsement. It also addresses aspects such as non-waiver provisions related to New York's General Business Law, termination rights for franchisees, and choice of law considerations, ensuring that franchisees retain rights conferred by Article 33 of the General Business Law of the State of New York. Furthermore, the addendum clarifies requirements related to providing the Franchise Disclosure Document to prospective franchisees before a sale can be made, in compliance with New York's Franchise Sales Act.