What is Ledgers' obligation regarding establishing company-owned or franchised locations within a franchisee's protected territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a company owned or franchised Ledgers location.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, while franchisees do not receive an exclusive territory, they are granted a protected territory. This means that Ledgers promises not to establish any company-owned or franchised Ledgers locations within the franchisee's defined geographical area.
However, the FDD also states that franchisees may still face competition within their territory from other franchisees, outlets that Ledgers owns, other channels of distribution, or competitive brands that Ledgers controls. This indicates that while Ledgers will not directly establish another Ledgers location, other forms of competition are possible.
Furthermore, the continuation of a franchisee's territorial rights depends on meeting certain growth requirements. Specifically, a franchisee cannot have declining revenue for two consecutive years. If these minimum requirements are not met, Ledgers reserves the right to establish a company-owned outlet selling similar goods or services under similar trademarks or service marks. This condition introduces a performance-based element to the territorial protection, where failure to maintain growth can lead to direct competition from Ledgers itself.