Does Ledgers have the right to change the passing standards for initial training?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit the Initial Franchise Fee to us before attending Initial Training, usually when the Franchise Agreement is signed. We will refund the Initial Franchise Fee paid by you if we do not approve your application or if you do not pass our Initial Training in accordance with our thencurrent passing standards for training provided that you return to us all materials which we distributed to you during training.
Source: Item 5 — INITIAL FEES (FDD page 17)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers retains the right to modify the passing standards for its initial training program. Item 5 states that a refund of the initial franchise fee is contingent upon not passing the initial training "in accordance with our then-current passing standards." This indicates that the passing standards are subject to change at Ledgers' discretion.
This provision has significant implications for prospective franchisees. It means that the criteria for successfully completing the initial training are not fixed and can be altered by Ledgers at any time. A franchisee who enrolls in the training program could find that the passing standards have been raised or changed, potentially making it more difficult to successfully complete the training.
If a franchisee fails to meet the then-current passing standards, they are entitled to a refund of the initial franchise fee, provided they return all training materials. However, the time and resources invested in the training would be lost. Furthermore, Item 8.2 indicates that Ledgers can terminate the Franchise Agreement without notice or opportunity to cure if a franchisee does not attend and pass the initial training in accordance with the current passing standards.
Prospective franchisees should carefully consider this aspect of the franchise agreement. It would be prudent to inquire about the specific passing standards for the initial training, understand how frequently these standards have been changed in the past, and assess the potential impact of any future changes on their ability to successfully complete the training program. Understanding the potential for changes in passing standards is crucial for assessing the risks associated with investing in a Ledgers franchise.