What is the length of the Restriction Period after the expiration or termination of the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
e adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration;
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- Abide by any other covenant in this Agreement that requires performance by you after you are no longer a franchisee.
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- Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
8.6. Non-Compete and No Solicitation
A. Post-Term.
You will not, during the Term and for a period of two (2) years after expiration or termination of this Agreement ("Restriction Period"), in the Territory or within twenty-five (25) miles of the boundaries of the Territory ("Restricted Market"), own or manage any business that provides prospective clients advisory, compliance, recordkeeping, payroll, or tax services ("Restricted Activities").
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Restriction Period lasts for two years after the expiration or termination of the Franchise Agreement. During this time, the franchisee is restricted from engaging in certain competitive activities within a defined geographic area.
Specifically, the franchisee cannot own or manage any business that provides advisory, compliance, recordkeeping, payroll, or tax services within the Territory or within twenty-five miles of its boundaries. This restriction applies even if the franchisee sells their Ledgers franchise business.
In addition to the non-compete clause, the franchisee is also prohibited from directly or indirectly providing the aforementioned services to any client, except through the Ledgers franchise business, during the Restriction Period. Furthermore, the franchisee must avoid any intentional conduct that could harm the relationship between existing clients or vendors and the franchise business. These post-term obligations are designed to protect Ledgers' interests and maintain the integrity of its franchise system.