Does Ledgers provide legal counsel to franchisees regarding compliance with local laws?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
In operating this franchise, you will be subject to laws and regulations from the IRS and states on obtaining the ability to e-file tax returns, due diligence, recordkeeping, privacy, and other laws.
You will also be subject to laws concerning administrative, technological and legal protections to safeguard customer data.
Certain states also regulate tax courses and require registration of such courses.
And certain states, such as California, Maryland, and Oregon, require training and licensure in order to offer tax preparation services. You should investigate the application of these laws further.
Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
Your Franchised Business must serve every Client in a professional and respectful businesslike manner diligently fulfilling your obligations to them when they desire to purchase your goods or services. In providing services, you must prepare tax returns and conduct business in accordance with all federal, state, and local laws. You must follow all rules of the Internal Revenue Service and any state or local taxing authority. You must develop internal policies to ensure compliance.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers does not provide legal counsel to franchisees regarding compliance with local laws. However, the FDD does state that as a Ledgers franchisee, you must prepare tax returns and conduct business in accordance with all federal, state, and local laws. It is also your responsibility to follow all rules of the Internal Revenue Service and any state or local taxing authority, and you must develop internal policies to ensure compliance.
Additionally, the FDD notes that in operating the franchise, franchisees will be subject to laws and regulations from the IRS and states on obtaining the ability to e-file tax returns, due diligence, recordkeeping, privacy, and other laws. Franchisees will also be subject to laws concerning administrative, technological, and legal protections to safeguard customer data. Certain states also regulate tax courses and require registration of such courses. Some states, such as California, Maryland, and Oregon, require training and licensure in order to offer tax preparation services, and the FDD advises franchisees to investigate the application of these laws further.
While Ledgers does not offer legal counsel, the FDD encourages prospective franchisees to consult with private legal counsel to determine the applicability of California and federal laws to any provisions of a franchise agreement restricting venue to a forum outside the State of California. This suggests that franchisees are expected to seek external legal advice to ensure they understand and comply with all applicable laws and regulations.