What is a required action regarding confidential information upon termination of the Ledgers Franchise Agreement?

According to the 2025 Ledgers Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee must destroy any Confidential Information stored in printed or digital form within ten (10) days and provide Ledgers with a written certification of destruction. However, the franchisee may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.

Ledgers defines "Confidential Information" as non-public sensitive or proprietary material related to their Franchise System, relationship with the franchisee or the Franchise Business whether provided by Ledgers or by the franchisee. This information can be oral or written in any form including tangible, intangible and electronic media regardless whether it is marked. Confidential Information includes client lists, performance data and reports from Ledgers' Franchise System along with any notes, summaries or other derivative works.

This means that as a Ledgers franchisee, you are obligated to protect Ledgers' confidential information both during the term of the agreement and after termination. You must take active steps to destroy confidential data and certify that destruction. The exception for retaining information for legal, tax, and insurance purposes is common in franchise agreements to allow for necessary compliance and defense activities. However, even retained information remains subject to confidentiality restrictions, meaning it cannot be used for competitive purposes or disclosed to unauthorized parties.