Where are the Minimum Requirements for a Ledgers franchise detailed?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
1.6. Minimum Requirements
Continuation of your territorial rights depends on achieving a certain growth. You cannot have declining revenue during two consecutive years ("Minimum Requirements"). A year will include each fiscal year (including any partial year) ending on December 31. If you fail to meet Minimum Requirements, then we reserve the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service Marks.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the minimum requirements for maintaining territorial rights are detailed in Section 1.6 of Item 22, which covers contracts. Specifically, the continuation of a franchisee's territorial rights is contingent upon achieving a certain level of growth.
The FDD states that a Ledgers franchisee cannot have declining revenue for two consecutive fiscal years, with each fiscal year ending on December 31. Failure to meet these minimum requirements gives Ledgers the right to establish a company-owned outlet that offers similar services under similar trademarks.
This requirement is important for prospective franchisees to understand, as it directly impacts their ability to maintain their territorial rights. Declining revenue for two consecutive years could result in Ledgers establishing a competing company-owned outlet within the franchisee's territory, which could significantly impact the franchisee's business. Therefore, franchisees need to focus on continuous growth and avoid consecutive years of declining revenue to protect their territorial rights.