If a Ledgers franchisee terminates the agreement by not renewing, what section of the Franchise Agreement outlines the termination terms?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term b. Renewal or extension of the term | 1.2.A 1.2.B | 10 years. Can be renewed for successive terms if you are in compliance with your Franchise Agreement ("Agreement"). |
| c. Requirements for you to renew or extend | 1.2.B | Renewing your Franchise Agreement means that you are able to continue your operations as a franchisee for an additional term. You must sign a general release of claims, notify us in writing at least 90 days before the expiration of the Agreement, and sign our then current Agreement, which may not contain materially different terms and conditions than your original contract. |
| d. Termination by franchisee | 7.2 | You may terminate the Agreement if you sell the franchise pursuant to the terms of the Franchise Agreement, do not renew, or under any grounds permitted by applicable state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Section 7.2 of the Franchise Agreement outlines the terms for a franchisee's termination of the agreement by not renewing. Item 17 provides a table summarizing key provisions of the franchise agreement related to renewal, termination, transfer and dispute resolution.
Specifically, the table indicates that under Section 7.2, a Ledgers franchisee may terminate the agreement if they sell the franchise, do not renew, or under any grounds permitted by applicable state law. This means that a franchisee who chooses not to renew their agreement is exercising their right to terminate as outlined in this section.
It is important for prospective Ledgers franchisees to carefully review Section 7.2 of the Franchise Agreement to fully understand the conditions and procedures related to termination, including any obligations or potential liabilities that may arise from not renewing the franchise agreement. Additionally, franchisees should be aware of any state laws that may provide further grounds for termination.