What specific services are included in the restriction on offering 'income tax preparation and related business services' after the termination of a Ledgers franchise?

According to Ledgers' 2025 Franchise Disclosure Document, after the termination, expiration, or nonrenewal of the Franchise Agreement, a franchisee is restricted from offering 'income tax preparation and related business services' within a specific geographic area for a period of two years.

Item 22 further clarifies this restriction by stating that during the 'Restriction Period,' which is defined as two years after the expiration or termination of the agreement, the franchisee cannot own or manage any business that provides prospective clients advisory, compliance, recordkeeping, payroll, or tax services ('Restricted Activities'). This restriction applies within the Territory or within twenty-five (25) miles of the boundaries of the Territory ('Restricted Market'), even if the franchisee sells their Ledgers business.

In summary, the non-compete clause prevents a former Ledgers franchisee from engaging in a broad range of services including advisory, compliance, recordkeeping, payroll, and tax services within their former territory or a 25-mile radius for two years after leaving the franchise system. This is a standard practice in franchising to protect the brand and existing franchisees from direct competition from former franchisees who have gained knowledge and experience within the Ledgers system.