How long can a Ledgers franchisee discontinue active operation of the Franchised Business before it's considered abandonment?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If you abandon the Franchised Business or discontinue the active operation of the Franchised Business for three or more business days, except when active operation is not reasonably possible, such as because of a natural disaster or government order.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee can only discontinue active operation of the franchised business for a very limited time before it's considered abandonment. Specifically, if a Ledgers franchisee discontinues active operation for three or more business days, Ledgers can consider it abandonment of the franchise.
However, there is an exception to this rule. The FDD states that the three-day limit does not apply "when active operation is not reasonably possible, such as because of a natural disaster or government order." This clause protects the franchisee in situations where external forces prevent them from operating the business.
This policy is important for prospective franchisees to understand. Abandonment of the franchise can lead to termination of the franchise agreement, and Ledgers is under no obligation to refund any fees if the agreement is terminated. Franchisees need to be aware of the circumstances that could lead to a termination of their agreement.