Does Ledgers offer an exclusive territory to franchisees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ement structure to be able to successfully open and operate another territory.
We do not grant you options, rights of first refusal, or similar rights to acquire additional franchises.
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.
You and other franchisees may not solicit (but may accept) orders from consumers outside of your Territory, including through the use of other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, but you may engage in internet and social media marketing pursuant to our guidelines which such marketing may extend outside your Territory.
Continuation of your territorial rights depends on achieving a certain sales 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 the 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.
We, our parent, and our affiliates reserve all rights not expressly granted in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While Ledgers does grant a protected territory, this means that Ledgers will not establish another company-owned or franchised location within the franchisee's designated geographical area. However, franchisees may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Ledgers.
Specifically, another Ledgers franchisee or affiliate can make sales to clients within a franchisee's territory using Ledgers' marks through channels like the Internet, catalog sales, or telemarketing. Ledgers is not obligated to compensate franchisees for sales solicited or accepted from clients inside their territory, though Ledgers states it will normally direct inquiries for services from within a franchisee's territory to that franchisee's business.
Ledgers also reserves the right to implement cross-territorial protocols for situations like group advertising buys or solicitation of clients who reside in one territory but work in another. Furthermore, Ledgers or its affiliates may make sales within a franchisee's territory using different trademarks, such as through its affiliate ATAX LLC d/b/a ATAX, which offers similar services.
In practical terms, a Ledgers franchisee's territory is protected only from direct competition from another physical Ledgers location. The franchisee must be prepared to compete with other franchisees and the franchisor's other brands through various channels, including online and telemarketing, even within their protected territory. This lack of exclusivity could impact a franchisee's potential client base and revenue, requiring them to actively compete for clients within their designated area.