What law is the Commissioner of Financial Protection and Innovation responsible for administering and enforcing, as stated in the Ledgers FDD?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Matter of a Consent Order between The Commissioner of Financial Protection and Innovation and John T. Hewitt, before the Commissioner of Financial Protection and Innovation for the State of California. The Commissioner is the head of the Department of Financial Protection and Innovation (Department) and is responsible for administering and enforcing the Franchise Investment Law (FIL) (Corp. Code, § 31000 et seq.), The Commissioner has determined pursuant to her authority under the FIL that John T. Hewitt is "subject to" the Final Order entered in the matter of United States of America v. Franchise Group Intermediate L 1, LLC d/b/a Liberty Tax Service (Case No. 2:19-cv-00653-RAJ-DEM) filed on or around December 3, 2019 in the United States District Court for the Eastern 25 District of Virginia (the Final Order). John T. Hewitt agreed that he is required to disclose the Final Order in Item 3 of any Franchise Disclosure Document filed by any present or future Franchisor where John T. Hewitt is a director, trustee, general partner, principal officer, or maintains management responsibility relating to the sale or operation of the respective Franchisor, along with disclosure of this governmental action.
Source: Item 3 — LITIGATION (FDD pages 11–16)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Commissioner of Financial Protection and Innovation is responsible for administering and enforcing the Franchise Investment Law (FIL). This law is codified in the California Corporations Code, specifically section 31000 et seq.
This means that the Commissioner has the authority to oversee franchise-related activities within California to ensure compliance with the FIL. This oversight includes the power to investigate potential violations, issue orders, and take enforcement actions against individuals or companies that do not comply with the law.
For a prospective Ledgers franchisee, this information is relevant because it highlights the regulatory environment in which the franchise operates. Understanding that the Franchise Investment Law is actively enforced by the Commissioner can provide assurance that there are mechanisms in place to protect franchisees from unfair or deceptive practices. It also underscores the importance of Ledgers adhering to all applicable franchise laws and regulations.