Which item in the Ledgers Franchise Disclosure Document addresses termination, cancellation, and non-renewal?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
estment. You should do your own research. Be sure to review the litigation disclosure (Item 3) in the FDD and do an Internet search of the franchisor and its officers.
This addenda must be executed simultaneously with the Franchise Agreement.
MINNESOTA
As to franchises governed by the Minnesota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- Minnesota Statutes, Section 80C.21 and Minnesota Rules 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreements can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
FDD: Item 17
FA: Section 9
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14 Subds. 3, 4, and 5 which require (except in certain specified cases), that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
FDD: Item 17
FA: Section 8
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name. Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
FDD: Item 13 FA: Section 1.10
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
FDD: Item 17 FA: Section 1.2
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
FDD: Item 17 FA: Section 8
- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5. Therefore, no action may be commenced pursuant to this section more than three years after the cause of action accrues.
FDD: Item 17 FA: Section 9.5.A
- Franchisor defers the collection of the Initial Fee until the opening of the franchised business.
FDD: Item 5 and Item 7 are modified to provide: "The Minnesota Department of Commerce requires us to defer payment of the initial franchise fee owed by franchisees to the franchisor until the franchisee has opened the franchised business."
FA: Section 2.1 is modified to provide, "Payment of the Initial Fee is deferred until you have opened the franchised business."
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
NEW YORK
As to franchises governed by the New York franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
1.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, Item 22 (Contracts) refers to multiple sections of the FDD and Franchise Agreement (FA) that address termination, cancellation, and non-renewal, particularly in conjunction with state addenda. Specifically, for Minnesota franchisees, Item 22 notes that the FDD's Item 17 and the FA's Section 9 relate to litigation, jury trial waivers, liquidated damages, and termination penalties. It also mentions that Item 17 of the FDD and Section 8 of the FA cover the conditions for termination and non-renewal, requiring specific notice periods. For Wisconsin franchisees, Item 22 states that Item 17 of the FDD and Section 8 of the FA are amended to comply with the Wisconsin Fair Dealership Law, which requires a 90-day written notice for termination, cancellation, or non-renewal, with a 60-day period to rectify any deficiencies. However, these notice provisions do not apply in cases of insolvency or bankruptcy. For California franchisees, Item 22 references the California Business and Professions Code, which provides rights concerning termination, transfer, or non-renewal of a franchise, and notes that California law will control if the Franchise Agreement contains inconsistent provisions. These references indicate that the Ledgers Franchise Agreement addresses termination, cancellation, and non-renewal, but the specific terms are subject to state laws that may modify or supersede the agreement's provisions. Prospective franchisees should carefully review these sections and any applicable state addenda to understand their rights and obligations regarding termination, cancellation, and non-renewal.