Does Ledgers have the right to use the internet to solicit customers within a franchisee's territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Minimum Requirements, then we reserve the right to establish a company-owned outlet selling the same or similar goods or services under the same or similar trademarks or service Marks.
We, our parent, and our affiliates reserve all rights not expressly granted in the Franchise Agreement. For example, we, our parent, and our affiliates have the right to:
- (a) use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within your Territory using our principal trademarks (or another trademark) without any compensation to you, except that we will normally direct inquiries for services from within your Territory to your Franchised Business
- (b) to implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories,
solicitation of orders of individuals who may reside in one Territory, yet work in another, and other cross-territorial situations;
- (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;
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, Ledgers, its parent, and affiliates retain specific rights regarding customer solicitation within a franchisee's territory. Specifically, Ledgers reserves the right to use various channels of distribution, including the internet, to solicit or accept customers within a franchisee's territory. This can be done using Ledgers's principal trademarks (or another trademark).
Ledgers is not obligated to compensate the franchisee when soliciting customers within their territory, but Ledgers will normally direct inquiries for services originating from within a franchisee's territory to that franchisee's business. This means that while Ledgers can market to customers in a franchisee's territory, leads generated from that territory will typically be passed on to the local franchisee.
While franchisees cannot actively solicit orders from consumers outside their territory through methods like the internet, they are permitted to engage in internet and social media marketing that may extend beyond their territory, provided they adhere to Ledgers's guidelines. This allows franchisees to maintain an online presence and market their services, even if it reaches potential customers outside their designated area. This is a common practice in franchising, allowing the franchisor to maintain brand consistency and control over marketing efforts while still allowing franchisees to participate in local marketing.