factual

How much time does a Ledgers franchisee have to cure a default after receiving notice?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

without the opportunity for you to cure. "Cause" means:

    1. If you do not attend and pass our Initial Training in accordance with our current passing standards;
    1. If you are charged with, indicted for, or convicted of a felony or serious misdemeanor involving moral turpitude;
    1. If you violate applicable laws, rules or regulations related to any franchise law, antitrust law, or securities law;
    1. If you commit fraud, misappropriation, embezzlement, or unfair and deceptive practices;
    1. If you make a material misstatement of fact or fail to disclose a material fact on a Biographical Information Form or in any requested form including the request for consideration or application,
    1. If you refuse to completely fill out a requested form or tender supporting documentation upon reasonable request;
    1. You become insolvent, meaning unable to pay your bills in the ordinary course as they become due;
    1. If a final judgment of record against you or your Franchise Business remains unsatisfied for thirty (30) days or longer;
    1. If on your death or incapacity, the transfer process does not begin within sixty (60) days or remains incomplete after 6 months; or
    1. 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.

8.3. Termination by Us with the Opportunity to Cure

We may terminate this Agreement, if the following conditions remain within thirty (30) days after sending you notice and an opportunity to cure:

    1. You violate any other term or condition of this Agreement, the Franchisee Operations Manual, or any other agreement with us; or
    1. Any amount owing to us from you is more than 30 days past due.

8.4. No Refund of Initial Fee

We have no obligation to return or refund any fee to you upon termination or expiration of this Agreement.

8.5. Post Termination Obligations

Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:

    1. Cease to operate the Franchised Business;
    1. Discontinue using any of our "Marks";
    1. Cancel all fictitious name filings which you use that includes any of our Marks;
    1. Pay to us all amounts owing to us;
    1. Reimburse Clients for any fees paid for services not yet rendered;
    1. If requested by us, transfer to us all telephone numbers used in relation to this Franchise Business by executing our then current form, and deliver to us written proof of transfer;
    1. At our option, and upon our request, use your best efforts to assist in transferring the lease of the facility of your Franchised Business, whether it be through a new lease or assignment;
    1. Return to us or certify destruction of any paper and electronic copies of the Manual and any Confidential Information (retaining only such copies as you need for legal or tax purposes);
    1. Adhere to the post-term duties stated in Section 8.6 entitled Non-Compete and No Solicitation and any other duties that require your performance after you are no longer a franchisee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)

What This Means (2025 FDD)

According to the 2025 Ledgers Franchise Disclosure Document, the standard cure period for a franchisee to rectify a breach of the Franchise Agreement is 30 days after receiving notice. Specifically, if a franchisee violates any term or condition of the Agreement, the Franchisee Operations Manual, or any other agreement with Ledgers, they have 30 days to correct the issue after receiving notice. Similarly, if any amount owed to Ledgers is more than 30 days past due, the franchisee has 30 days to pay the outstanding amount to avoid termination of the agreement.

However, Wisconsin franchisees have different cure rights due to the Wisconsin Fair Dealership Law. For Wisconsin franchisees, Ledgers must provide 90 days written notice of a proposed termination, stating all reasons for termination. The franchisee then has 60 days from the date of the notice to rectify any claimed deficiency. If the franchisee fixes the deficiency within 60 days, the termination notice is void.

There is an exception for nonpayment of sums due under the Franchise Agreement. In this case, Wisconsin franchisees are still entitled to 90 days written notice, but they only have 10 days to remedy the default from the date of the notice. The notice provisions do not apply if the reason for termination is insolvency, assignment for the benefit of creditors, or bankruptcy.

It is important for prospective franchisees to understand these cure periods, as failure to rectify a default within the specified timeframe can lead to termination of the Franchise Agreement. Franchisees should also be aware of any state-specific laws that may provide additional protections or different cure periods, such as the Wisconsin Fair Dealership Law.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.