Does Ledgers require advance written approval of the Business Manager?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate a Business Manager. If you are an individual, then you must serve as Business Manager. You must inform us in writing of the identity of your Business Manager, furnish information to us regarding the candidate's background, experience and credentials, and secure our advance written approval before you engage him or her. We will not unreasonably withhold or deny our approval. Your Business Manager must have complete decision-making authority with regard to your Franchised Business and must have authority to act on your behalf in all respects under the Franchise Agreement. Your Business Manager is the only individual with whom we will be required to communicate when we seek to communicate with you. Your Business Manager must complete the Initial Training Program to our satisfaction.
If you desire to designate a successor or replacement Business Manager, then you must notify us in writing; identify your proposed successor Business Manager and the reason that your predecessor Business Manager ceased to serve; furnish us with all information we may reasonably request regarding the proposed successor; and, obtain our advance written approval, which we will not unreasonably delay or deny.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, if a franchisee chooses to designate a Business Manager, they must secure advance written approval from Ledgers before engaging that individual. The franchisee must inform Ledgers in writing of the identity of their Business Manager and furnish information regarding the candidate's background, experience, and credentials. Ledgers states that it will not unreasonably withhold or deny approval.
The Business Manager must have complete decision-making authority regarding the Franchised Business and must have the authority to act on the franchisee's behalf in all respects under the Franchise Agreement. The Business Manager is the primary point of contact for Ledgers when they need to communicate with the franchisee. Furthermore, the Business Manager must complete the Initial Training Program to Ledgers' satisfaction.
If a franchisee desires to designate a successor or replacement Business Manager, they must again notify Ledgers in writing, identify the proposed successor, explain why the predecessor ceased to serve, and provide any information Ledgers reasonably requests. Again, advance written approval is required, and Ledgers states that it will not unreasonably delay or deny such approval. Both the franchisee and any Business Manager must pass a background check. The Business Manager is also required to sign an employment contract with the franchisee that contains confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against Ledgers.