Does Ledgers have the right to establish or grant rights to others to establish Franchised Businesses outside of my Territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) to establish and operate, and grant rights to others to establish and operate a Franchised Businesses or similar businesses at any locations outside of the Territory and on any terms and conditions we deem appropriate;
Our affiliate ATAX LLC d/b/a ATAX operates company outlets and offers franchise opportunities for income tax preparation, bookkeeping, payroll, and incorporation services, along with other business services, as described in Item 1. Although Ledgers and ATAX typically target a different client base, ATAX franchisees do offer goods and services that are similar to the goods and services you will offer in your Territory and therefore may solicit or accept orders from within your Territory.
We will be the sole decision maker for any conflicts between the franchisor and franchises and between franchisees of each system regarding territory, customers, and franchisor support.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers retains the right to establish or grant rights to others to establish franchised businesses outside of a franchisee's territory. This means that while a franchisee is granted a specific territory, Ledgers is not restricted from expanding its franchise network beyond those boundaries.
This has significant implications for prospective franchisees. While franchisees receive a protected territory where Ledgers promises not to establish a company-owned or franchised Ledgers location, Ledgers can still grow its brand elsewhere. This is a fairly standard practice in franchising, as franchisors typically need the flexibility to expand into new markets and optimize their overall network.
Ledgers also states that its affiliate, ATAX LLC, operates company outlets and offers franchise opportunities for similar services. Although Ledgers and ATAX typically target a different client base, ATAX franchisees may solicit or accept orders from within a Ledgers franchisee's territory. Ledgers will be the sole decision maker for any conflicts between the franchisor and franchises and between franchisees regarding territory, customers, and franchisor support.