How long must a final judgment against a Ledgers franchisee remain unsatisfied before it constitutes grounds for termination?

According to Ledgers's 2025 Franchise Disclosure Document, a final judgment of record against a franchisee or their franchise business that remains unsatisfied for thirty (30) days or longer can be grounds for termination of the franchise agreement. This means that if a court issues a final judgment against a Ledgers franchisee, and the franchisee does not pay or otherwise resolve the judgment within 30 days, Ledgers has the right to terminate the franchise agreement.

This provision protects Ledgers from franchisees who may be facing significant financial difficulties, as an unsatisfied judgment can be a sign of insolvency. By including this clause, Ledgers aims to maintain the financial stability and reputation of its franchise system.

For a prospective Ledgers franchisee, this highlights the importance of maintaining sound financial management and promptly addressing any legal judgments. Failure to do so could result in the termination of their franchise agreement and the loss of their investment. Franchisees should be aware of this clause and take steps to ensure they can meet their financial obligations and resolve any legal issues in a timely manner.