Does Ledgers have the option to purchase a Ledgers franchisee's furniture, equipment, signage, fixtures, and supplies upon termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- At our option, offer to us the right to purchase your furniture, equipment, signage, fixtures, and supplies within thirty (30) days of the date of termination for the adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers has the option to purchase a franchisee's assets upon termination. Specifically, Ledgers has the option to purchase the franchisee's furniture, equipment, signage, fixtures, and supplies.
To exercise this option, Ledgers must make the offer to purchase within thirty days of the termination date. The purchase price will be the adjusted book value of the assets. Adjusted book value is defined as the undepreciated book value of the assets as reported on the franchisee's most recently filed federal tax return before the termination or expiration date.
This clause in the franchise agreement protects Ledgers by allowing them to maintain brand consistency and potentially assist a new franchisee taking over the location. For the franchisee, it provides a potential avenue to sell assets that may be difficult to liquidate quickly, although the price is determined by book value rather than fair market value.