How is 'insolvent' defined in the context of the Ledgers franchise agreement, and what is the consequence?

According to Ledgers' 2025 Franchise Disclosure Document, being 'insolvent' is defined as being unable to pay bills in the ordinary course as they become due.

If a Ledgers franchisee becomes insolvent, it constitutes a breach of the franchise agreement. This is listed as one of several conditions that could lead to the termination of the franchise agreement.

Other conditions that could lead to termination include making a material misstatement of fact on a Biographical Information Form, refusing to completely fill out a requested form, having a final judgment of record against the franchisee that remains unsatisfied for thirty days or longer, or abandoning the franchised business.