If Ledgers suspends technology services as an Interim Remedy, does this include tax, accounting, or bookkeeping software?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
impose Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement. If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. Interim Remedies include:
- (a) we may suspend the provision of all technology and software services provided to you pursuant to this Agreement, including any tax, accounting or bookkeeping software and/or website services; and
- (b) we may suspend our ongoing support, and the performance of all other obligations set forth in Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if Ledgers imposes Interim Remedies, this may include suspending the provision of all technology and software services. This explicitly includes any tax, accounting, or bookkeeping software, as well as website services provided to the franchisee under the agreement.
This means that if Ledgers determines a franchisee is in default of the franchise agreement, the Operations Manual, or any other agreement with them, Ledgers has the right to suspend access to these critical software tools. This action can be taken regardless of whether the default is curable and includes the suspension of obligations under the agreement.
For a prospective franchisee, this highlights a significant risk. Loss of access to essential software could severely impede the franchisee's ability to operate their Ledgers business, potentially leading to further financial strain or even business failure. The franchisee will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses incurred by reason of Ledgers' exercise and/or withdrawal of any Interim Remedy. It is crucial to understand the conditions under which these interim remedies can be applied and to assess the potential impact on business operations.