What level of effort is required of a Ledgers franchisee to implement cross-territorial protocols?

According to the 2025 Ledgers Franchise Disclosure Document, franchisees are required to use "commercially reasonable efforts" to implement cross-territorial protocols. These protocols apply to situations such as group advertising buys extending into multiple territories, solicitation of clients who reside in one territory but work in another, and other similar cross-territorial situations.

This means a Ledgers franchisee is expected to make a good-faith effort, consistent with standard business practices, to follow any guidelines Ledgers establishes for handling clients or marketing activities that involve more than one franchise territory. The term "commercially reasonable efforts" is not precisely defined, but generally implies a level of effort that is practical and justifiable from a business perspective, without causing undue hardship to the franchisee.

For a prospective franchisee, this requirement suggests that Ledgers aims to foster cooperation and coordination among its franchisees, particularly in overlapping markets. It also implies that Ledgers may implement specific rules or procedures to manage these situations, and franchisees are expected to comply with them to a reasonable extent. This could involve adjusting advertising strategies, coordinating client services, or adhering to specific communication protocols.

It is important to note that the FDD does not provide specific examples of what "commercially reasonable efforts" might entail in practice. A prospective franchisee should seek clarification from Ledgers during their due diligence to understand the types of cross-territorial protocols that are currently in place or are anticipated, and what level of effort is expected in implementing them. Understanding these expectations will help a franchisee assess the potential impact on their business operations and profitability.