What is the obligation of the franchisee regarding the performance data shared by Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
5.4. Performance Data
Performance data is Confidential Information. We reserve the right to share performance data of your Franchise Business with individuals and agents who need it to provide us with assistance or to comply regulatory requirements.
Confidentiality
6.1. Definition
The term "Confidential Information" is defined as non-public sensitive or proprietary material related to our Franchise System, relationship with you or the Franchise Business whether provided
by us or by you. The disclosure may be oral or written in any form including tangible, intangible and electronic media regardless whether it is marked. For the avoidance of doubt, Confidential Information includes Client lists, performance data and reports from our Franchise System along with any notes, summaries or other derivative works. Confidential Information does not include material that: a) you possessed more than thirty (30) days before the Effective Date of any contract between us, b) independently developed, c) obtained from a third party with no corresponding obligation of confidentiality, or d) in the public domain.
6.2. Confidentiality
You will not directly or indirectly disclose, publish, share with any third party any Confidential Information without our prior written consent. You may share Confidential Information with your employees or agents that need it to complete essential job functions if they are covered by equivalent restrictions.
6.3. Use
You may only use Confidential Information to perform your obligations under this Agreement. You will avoid using Confidential Information for your own benefit or to our detriment. For the avoidance of doubt, Confidential Information cannot be used in a competing business that is detrimental to us.
6.4. Storage
You will store Confidential Information in a secure location whether physically or electronically. You must follow all regulatory and legal requirements for the protection of consumer data and tax preparer data. You must notify us if the Confidential Information is lost or stolen, regardless of fault.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees have specific obligations regarding performance data. This data is considered Confidential Information, meaning it is non-public, sensitive, and proprietary material related to the Ledgers Franchise System, the relationship between the franchisee and Ledgers, or the Franchise Business itself. This information can be shared orally or in writing, including tangible, intangible, and electronic media, regardless of whether it is marked as confidential. Client lists and reports from the Franchise System also fall under this definition.
As a franchisee, you are prohibited from directly or indirectly disclosing, publishing, or sharing any Confidential Information with any third party without Ledgers' prior written consent. However, you may share Confidential Information with your employees or agents if they need it to perform essential job functions and are subject to similar confidentiality restrictions. The franchisee is only allowed to use Confidential Information to fulfill their obligations under the Franchise Agreement and must avoid using it for their own benefit or to the detriment of Ledgers, including using it in a competing business.
The FDD also states that franchisees must store Confidential Information securely, whether physically or electronically, and follow all regulatory and legal requirements for protecting consumer and tax preparer data. Franchisees are obligated to notify Ledgers if Confidential Information is lost or stolen, regardless of fault. These stipulations ensure the protection of sensitive business and client data, maintaining the integrity and competitive advantage of the Ledgers franchise system.