What rights does Business and Professions Code 20010 protect for Ledgers franchisees?

According to Ledgers' 2025 Franchise Disclosure Document, California Business and Professions Code 20010 voids a waiver of rights under the Franchise Relations Act (Business and Professions Code 20000 through 20043). This means that any attempt by Ledgers to have a franchisee waive their rights under the Franchise Relations Act is legally void in California. This protection is particularly relevant when a franchisee is considering renewing or transferring their franchise, as they are typically asked to sign a general release.

The Franchise Relations Act generally governs the relationship between franchisors and franchisees, addressing issues such as termination, non-renewal, and transfer of the franchise. By preventing the waiver of rights under this Act, California law aims to ensure a fairer balance of power between Ledgers and its franchisees. This protection helps to prevent Ledgers from using its position to force franchisees into accepting unfavorable terms or conditions that would otherwise be prohibited by the Franchise Relations Act.

Prospective Ledgers franchisees in California should be aware of this protection and understand that they cannot legally waive their rights under the Franchise Relations Act, regardless of what the franchise agreement may state. This provision is designed to safeguard franchisees from potentially overreaching actions by the franchisor and ensures that they retain the full legal protections afforded to them under California law.