What are the post-termination obligations for a Ledgers franchisee regarding operating the franchised business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, including a sale of the Franchise Business, you will:
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- Cease to operate the Franchised Business;
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- Discontinue using any of our "Marks";
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- Cancel all fictitious name filings which you use that includes any of our Marks;
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- Adhere to the post-term duties stated in Section 8.6 entitled Non-Compete and No Solicitation and any other duties that require your performance after you are no longer a franchisee.
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- Refrain from making disparaging comments in any form about us or our current and former employees, agents, members, directors, or franchisees.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must cease operating the Franchised Business. This means the franchisee can no longer conduct business under the Ledgers name or system.
Additionally, the franchisee must discontinue using any of Ledgers' Marks and cancel all fictitious name filings that include any of those Marks. The franchisee is also obligated to adhere to post-term duties, including non-compete and no solicitation agreements, as well as any other duties that require performance after they are no longer a franchisee.
These obligations ensure that the franchisee does not continue to benefit from Ledgers' brand recognition or proprietary information after the agreement ends, and that the franchisee does not unfairly compete with Ledgers or solicit its clients or employees. The franchisee must also refrain from making disparaging comments about Ledgers or its employees, agents, members, directors, or franchisees.