Are Ledgers' officers, directors, members, shareholders, agents, and employees considered third-party beneficiaries to the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
10.3. Third Party Beneficiaries
Our officers, directors, members, shareholders, agents, and employees are express third party beneficiaries to this Agreement. You are not a third-party beneficiary to any agreement between us and any other franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company's officers, directors, members, shareholders, agents, and employees are considered express third-party beneficiaries to the Franchise Agreement. This means that these individuals and groups have specific rights and benefits under the agreement, even though they are not the direct parties (Ledgers and the franchisee) signing the contract.
This designation as third-party beneficiaries gives Ledgers' personnel the ability to directly enforce provisions of the Franchise Agreement that benefit them. For example, if the agreement contains clauses that protect these individuals from certain liabilities or require the franchisee to act in a specific way that benefits them, they can take legal action to ensure compliance.
Conversely, the FDD also states that a Ledgers franchisee is not a third-party beneficiary to any agreement between Ledgers and any other franchisee. This clarifies that franchisees cannot claim rights or benefits from agreements that Ledgers has with other franchisees, ensuring that each franchise agreement stands independently.