What requirements must be included in the employment contract for a Ledgers Business Manager?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Ledgers Franchise Disclosure Document, if a franchisee chooses to employ a Business Manager, the employment contract between the franchisee and the Business Manager must include specific provisions. These provisions are designed to protect Ledgers' confidential information and business interests.
Specifically, the employment contract must contain confidentiality requirements to ensure that the Business Manager does not disclose sensitive business information. Additionally, the contract must include a covenant not to solicit customers. This prevents the Business Manager from attempting to take Ledgers' clients if they leave the franchisee's employment. The contract must also include a covenant not to compete, to the extent permitted by law. This prevents the Business Manager from directly competing with the franchisee or Ledgers during and after their employment.
These requirements ensure that Ledgers franchisees protect the franchisor's interests when delegating operational responsibilities to a Business Manager. The franchisee remains responsible for ensuring the Business Manager fulfills all obligations under the Franchise Agreement, and the employment contract serves as a legal tool to enforce these obligations.