What sales growth must a Ledgers franchisee achieve to maintain their territorial rights?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Continuation of your territorial rights depends on achieving a certain sales growth. You cannot have declining revenue during two consecutive years ("Minimum Requirements"). A year will include each fiscal year (including any partial year) ending on December 31. If you fail to meet the 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.
Source: Item 12 — TERRITORY (FDD pages 32–34)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee must maintain a certain level of sales growth to retain their territorial rights. Specifically, a Ledgers franchisee cannot have declining revenue for two consecutive years, which Ledgers refers to as the "Minimum Requirements." These years are defined as fiscal years ending on December 31.
If a Ledgers franchisee fails to meet these Minimum Requirements, Ledgers reserves the right to establish a company-owned outlet within the franchisee's territory that offers similar goods or services under similar trademarks or service marks. This means that a franchisee could face direct competition from a company-owned store if their revenue declines for two years in a row.
This condition highlights the importance of consistent sales performance for Ledgers franchisees. While franchisees are granted a protected territory, this protection is contingent upon meeting the Minimum Requirements. Prospective franchisees should carefully consider their ability to maintain or grow revenue year-over-year to avoid the risk of losing territorial protection and facing competition from a company-owned outlet.