Does Ledgers permit a sub-license of the Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Termination or Expiration of this Agreement, you must destroy any Confidential Information stored in printed or digital form within ten (10) days and provide us with a written certification of destruction. However, you may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.
Transfer
7.1. Assignment by Us
We may assign this Agreement to an assignee who remains bound by its terms. We do not permit a sub-license of the Agreement.
7.2. Transfer by You
You may transfer your interest in this Agreement or your ownership in the Franchise Business if:
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- you are in full compliance with the Agreement,
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- current in all monies owed to us,
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- we approve of the individual or entity to which you are transferring ("Transferee"), which our consent will not be unreadably withheld;
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- Transferee meets the requirements of Section 7.8.
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- You sign the then current transfer and release form, and
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- You pay to use the transfer fee (if any). See Section 2.11.
7.3. Joint Tenancy
If this Agreement is held by joint tenants or tenants in common, all joint tenants or tenants in common must join in any transfer of an ownership interest in this Agreement, except any person who is deceased or under a legal disability.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers does not permit a sub-license of the Franchise Agreement. However, Ledgers may assign the agreement to another party who will remain bound by its terms.
While a franchisee cannot sub-license their agreement, they can transfer their interest in the Franchise Agreement or their ownership in the franchise business under certain conditions. These conditions include being in full compliance with the agreement, being current on all payments owed to Ledgers, and obtaining Ledgers's approval of the individual or entity to whom the franchise is being transferred. The transferee must also meet specific requirements, and the franchisee must sign the current transfer and release form and pay any applicable transfer fees.
There is an exception to the transfer requirements for a transfer to a Controlled Entity, which is defined as an entity in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest. In this case, a transfer fee is not charged. The franchisee must notify Ledgers in writing of the name of the Controlled Entity and the name and address of each officer, director, shareholder, member, partner, or similar person and their respective ownership interest. Each such person of the Controlled Entity must sign the then-current amendment and release forms or Franchisee Agreement as required by Ledgers.