What promise does Ledgers make regarding establishing company-owned or franchised locations within a franchisee's protected territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ement structure to be able to successfully open and operate another territory.
We do not grant you options, rights of first refusal, or similar rights to acquire additional franchises.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a protected territory, meaning a geographical area within which we promise not to establish a company owned or franchised Ledgers location.
You and other franchisees may not solicit (but may accept) orders from consumers outside of your Territory, including through the use of other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, but you may engage in internet and social media marketing pursuant to our guidelines which such marketing may extend outside your Territory.
Continuation of your territorial rights depends on achieving a certain sales growth. You cannot have declining revenue during two consecutive years ("Minimum Requirements"). A year will include each fiscal year (including any partial year) ending on December 31. If you fail to meet the Minimum Requirements, then we reserve the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service Marks.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, while franchisees do not receive an exclusive territory, they are granted a protected territory. This means that Ledgers promises not to establish a company-owned or franchised Ledgers location within the franchisee's defined geographical area. The territory is defined by zip codes, natural, or political boundaries and will normally include a minimum population of approximately 65,000 residents.
However, this territorial protection is contingent upon the franchisee meeting certain sales growth requirements. Specifically, the franchisee cannot have declining revenue for two consecutive years, with each year ending on December 31. If a franchisee fails to meet these minimum requirements, Ledgers reserves the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the franchisee's territory.
It is also important to note that Ledgers's affiliate, ATAX LLC, operates company outlets and offers franchise opportunities for similar services, potentially leading to competition within a Ledgers franchisee's territory. While Ledgers and ATAX typically target different client bases, ATAX franchisees offer similar goods and services and may solicit or accept orders from within a Ledgers franchisee's territory. This should be a consideration for prospective franchisees when evaluating the potential for competition within their protected territory.