Can Ledgers operate or franchise a business under a different trademark that sells similar goods or services to my Ledgers franchise, anywhere?

According to the 2025 Ledgers Franchise Disclosure Document, Ledgers, its parent company, and its affiliates retain the right to operate or franchise a business under a different trademark, even if that business sells goods or services similar to those offered by a Ledgers franchise, and this can occur anywhere. This is explicitly stated in Item 12 regarding territory.

This means that as a Ledgers franchisee, you could potentially face competition from a business operated or franchised by Ledgers itself (or its affiliates) under a different brand name, even within your own territory. While the FDD states that Ledgers and its affiliate ATAX typically target different client bases, ATAX franchisees do offer similar goods and services and may solicit or accept orders from within a Ledgers franchisee's territory.

This is a significant risk for prospective franchisees. It is important to understand that the protected territory granted to a Ledgers franchisee only restricts Ledgers from establishing another Ledgers location, not a similar business operating under a different trademark. This clause gives Ledgers considerable flexibility to expand its reach through alternative brands without directly violating the franchise agreement.

Before investing in a Ledgers franchise, prospective franchisees should carefully consider the potential impact of this clause on their business. It would be prudent to discuss with Ledgers their future plans for operating or franchising similar businesses under different trademarks and to assess the potential for competition from these alternative brands in your target market.