According to Ledgers' 2025 Franchise Disclosure Document, the modification to the franchise agreement regarding termination upon bankruptcy applies specifically to franchisees governed by the Maryland Franchise Registration and Disclosure Law. The FDD states that if any terms in the Disclosure Document or Franchise Agreement are inconsistent with the terms outlined for Maryland, the Maryland-specific terms will take precedence.

Specifically, the Ledgers FDD notes that "the provision in the franchise agreement which provides for termination upon bankruptcy of the franchisee may not be enforceable under the federal bankruptcy law (11 U.S.C. Section 1010 et seq.)." This modification is part of a series of modifications listed under the heading "MARYLAND" and applies only to franchises governed by Maryland law.

This means that for Ledgers franchisees in Maryland, the standard franchise agreement's clause allowing termination upon bankruptcy may not be enforceable due to federal bankruptcy law. However, this protection may not extend to franchisees operating in other states, as the modification is explicitly limited to Maryland franchises. Prospective franchisees outside of Maryland should be aware that the standard termination upon bankruptcy clause in the franchise agreement may still apply to them.