What level of decision-making authority must the Business Manager have regarding the Ledgers Franchised Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate a Business Manager. If you are an individual, then you must serve as Business Manager. You must inform us in writing of the identity of your Business Manager, furnish information to us regarding the candidate's background, experience and credentials, and secure our advance written approval before you engage him or her. We will not unreasonably withhold or deny our approval. Your Business Manager must have complete decision-making authority with regard to your Franchised Business and must have authority to act on your behalf in all respects under the Franchise Agreement. Your Business Manager is the only individual with whom we will be required to communicate when we seek to communicate with you. Your Business Manager must complete the Initial Training Program to our satisfaction.
If you desire to designate a successor or replacement Business Manager, then you must notify us in writing; identify your proposed successor Business Manager and the reason that your predecessor Business Manager ceased to serve; furnish us with all information we may reasonably request regarding the proposed successor; and, obtain our advance written approval, which we will not unreasonably delay or deny.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, if a franchisee does not personally manage the day-to-day operations, they must designate a Business Manager who has complete decision-making authority. This Business Manager must have the authority to act on behalf of the franchisee in all respects under the Franchise Agreement.
Ledgers requires written notification and approval of the Business Manager, including providing information about their background, experience, and credentials. The franchisor states that they will not unreasonably withhold or deny approval of a Business Manager. The Business Manager is the primary point of contact for Ledgers when communication with the franchisee is necessary.
The Business Manager must also complete the initial training program to Ledgers's satisfaction. Furthermore, the Business Manager must sign an employment contract with the franchisee that contains confidentiality requirements and, where legally permissible, a covenant not to solicit customers or compete against the franchisee or Ledgers. This ensures the protection of Ledgers's interests and trade secrets.
Both the franchisee and the Business Manager must pass a background check. This requirement underscores Ledgers's commitment to maintaining a high standard of integrity and trustworthiness within its franchise network. This comprehensive approach to the Business Manager role ensures that the Ledgers franchise operates smoothly and in compliance with the franchise agreement, even when the franchisee is not directly involved in daily operations.