What post-term duties must a Ledgers franchisee adhere to as stated in Section 8.6 regarding Non-Compete and No Solicitation?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
8.6. Non-Compete and No Solicitation
A. Post-Term.
You will not, during the Term and for a period of two (2) years after expiration or termination of this Agreement ("Restriction Period"), in the Territory or within twenty-five (25) miles of the boundaries of the Territory ("Restricted Market"), own or manage any business that provides prospective clients advisory, compliance, recordkeeping, payroll, or tax services ("Restricted Activities"). This restriction applies even if you sell your Franchise Business**.**
B. No Solicitation
During the Restriction Period, you will not directly or indirectly provide advisory, compliance, recordkeeping, payroll, or tax services to any Client, except through the Franchise Business.
C. Disparagement
During the Restricted Period, you will avoid intentional conduct that leads any existing Client or vendor to modify their relationship to the harm of the Franchise Business.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Section 8.6 outlines the post-term non-compete and non-solicitation duties of a franchisee. After the franchise agreement expires or terminates, the franchisee is restricted from engaging in certain business activities.
Specifically, for a period of two years after the agreement's expiration or termination (the "Restriction Period"), the franchisee cannot own or manage any business that provides advisory, compliance, recordkeeping, payroll, or tax services ("Restricted Activities"). This restriction applies within the franchisee's original territory or within 25 miles of its boundaries ("Restricted Market"), even if the franchisee sells their Ledgers franchise.
Furthermore, during the Restriction Period, the franchisee is prohibited from directly or indirectly providing these restricted services to any client, unless it is through the Ledgers franchise. The franchisee must also avoid any intentional conduct that could harm the Ledgers franchise's relationships with existing clients or vendors during this period. These stipulations ensure that franchisees do not leverage their knowledge and relationships gained during the franchise term to unfairly compete with Ledgers after the agreement ends.