What is the maximum number of business days a Ledgers franchise can be inactive 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' 2025 Franchise Disclosure Document, a franchisee can discontinue active operation of their Franchised Business for a maximum of two business days before it is considered abandonment. Specifically, if a Ledgers franchise is inactive for three or more business days, Ledgers may consider this abandonment of the franchise.
However, there is an exception to this rule. If active operation is not reasonably possible due to circumstances such as a natural disaster or a government order, the inactivity may not be considered abandonment. This clause protects the franchisee in situations beyond their control that prevent them from operating the business.
This term is important for prospective franchisees to understand, as abandonment can be grounds for termination of the franchise agreement. Franchisees need to be aware of the conditions under which their business could be considered abandoned and take steps to avoid such a situation, or communicate with Ledgers if unforeseen circumstances arise.