Does Ledgers have the power to dissolve the advertising council?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Council. We intend to establish a Franchisee Advisory Council ("FAC") composed of franchisees that advises us on operational and advertising policy. We select the members. The FAC serves in an advisory capacity only. We have the power to form, change, or dissolve the advertising council.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–32)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers retains the authority to dissolve the Franchisee Advisory Council (FAC). The document states that Ledgers intends to establish a Franchisee Advisory Council composed of franchisees to advise on operational and advertising policy, with members selected by Ledgers.
However, the FDD clearly states that the FAC serves only in an advisory capacity. This means that while Ledgers may seek input from franchisees on these matters, the final decision-making power rests solely with Ledgers.
Specifically, Ledgers maintains the power to form, change, or dissolve the advertising council at its discretion. This unilateral control over the FAC's existence and structure is a notable aspect for potential franchisees to consider. While the FAC offers a channel for franchisee input, Ledgers ultimately controls its fate.