Does Ledgers require franchisees to participate personally in the day-to-day operation of their Franchised Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate personally in the day-to-day operation of your Franchised Business unless we permit otherwise in writing. You must devote your time, attention and best efforts to performing your obligations under the Franchise Agreement.
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.
You and any Business Manager must pass a background check. However, your Designated Manager is not required to have an equity interest in the franchisee, if it is an entity.
All owners of this franchise must guarantee the obligations under the Franchise Agreement. However, your spouse is not required to guarantee your performance under the Franchise Agreement. This means your spouse is not bound by their own personal guaranty, duty of confidentiality or duty not to compete; however, that does not mean you can circumvent your obligations by sharing our know-how with your spouse (or any family member) nor assist them in competing with us. Furthermore, your Business Manager must sign an employment contract with you containing confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against you or us.
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, franchisees are generally required to participate personally in the day-to-day operations of their franchised business. However, Ledgers may grant written permission for the franchisee to designate a Business Manager to handle these responsibilities.
If a franchisee chooses to designate a Business Manager, they must inform Ledgers in writing and provide information regarding the candidate's background, experience, and credentials. Ledgers' advance written approval is required before engaging the Business Manager, but Ledgers will not unreasonably withhold or deny approval. The Business Manager must have complete decision-making authority and be authorized to act on behalf of the franchisee in all respects under the Franchise Agreement. Ledgers will only communicate with the Business Manager when seeking to communicate with the franchisee.
The Business Manager must also complete the Initial Training Program to Ledgers' satisfaction. Both the franchisee and any Business Manager must pass a background check. The Business Manager is 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 or the franchisee. All owners of the franchise must guarantee the obligations under the Franchise Agreement, but a spouse is not required to guarantee performance.