According to Ledgers' 2025 Franchise Disclosure Document, during the Restriction Period, a franchisee must avoid intentional conduct that leads any existing client or vendor to modify their relationship to the harm of the Franchise Business. The Restriction Period is defined as the time during the term of the Franchise Agreement and for two years after the agreement's expiration or termination. This restriction applies within the franchisee's territory or within 25 miles of its boundaries.

This clause aims to protect the Ledgers brand and the relationships franchisees have with their clients and vendors. If a franchisee intentionally acts in a way that damages these relationships, it could lead to legal repercussions. This could include a lawsuit from Ledgers to enforce the non-disparagement clause, potentially resulting in financial penalties or other remedies.

This type of clause is common in franchise agreements to prevent franchisees from undermining the business or reputation of the franchise system, especially after they leave the system. Prospective franchisees should understand that their actions can have long-term consequences, even after their franchise agreement ends. They should also be aware that Ledgers can take legal action to protect its interests and the interests of its other franchisees.