Does Ledgers have the right to suspend tax, accounting, or bookkeeping software services?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
impose Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement. If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. Interim Remedies include:
- (a) we may suspend the provision of all technology and software services provided to you pursuant to this Agreement, including any tax, accounting or bookkeeping software and/or website services; and
- (b) we may suspend our ongoing support, and the performance of all other obligations set forth in Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers has the right to suspend the provision of technology and software services to a franchisee under certain circumstances. These services include tax, accounting, and bookkeeping software, as well as website services. This action is considered an "Interim Remedy" that Ledgers can impose.
Ledgers' right to impose Interim Remedies does not constitute a termination or abandonment of the franchise agreement, and it is in addition to any other rights or remedies Ledgers may have. If Ledgers exercises this right, it does not waive any breach of the agreement by the franchisee. The franchisee is not entitled to any compensation for losses incurred due to the exercise or withdrawal of any Interim Remedy.
This provision means that Ledgers franchisees could face a disruption in essential software and technology services if Ledgers chooses to exercise its right to Interim Remedies. This could significantly impact the franchisee's ability to operate their business and serve clients. Prospective franchisees should carefully consider the circumstances under which Ledgers might invoke this right and the potential consequences for their business operations.