To whom does the Ledgers State-Specific Addendum apply?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
modifications are to Loyalty Business Services LLC d/b/a Ledgers Franchise Disclosure Document and may supersede, to the extent then required by valid applicable state law, certain portions of the Franchise Agreement dated The provisions of this State Law Addendum to Franchise Disclosure Document and Franchise Agreement ("State Addendum") apply only to those persons residing or operating a Ledgers Franchised Business in the following states: Michigan, California, Illinois, Indiana, Maryland, Minnesota, New York, Rhode Island, Virginia, or Wisconsin.
CALIFORNIA
As to franchises governed by the California Franchise Investment Law, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer or non-renewal of a franchise. If the Franchise Agreement or Agreement contains provisions that are inconsistent with the law, the law will control.
The Franchise Agreement provide for termination upon bankruptcy. This provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A. Sec. 101 et seq.).
The Franchise Agreement contain covenants not to compete which extend beyond the termination of the agreements. These provisions may not be enforceable under California law.
Section 31125 of the California Corporation Code requires the franchisor to provide you with a disclosure document before asking you to agree to a material modification of an existing franchise.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the State Law Addendum applies specifically to individuals residing or operating a Ledgers franchise in certain states. These states include Michigan, California, Illinois, Indiana, Maryland, Minnesota, New York, Rhode Island, Virginia, and Wisconsin.
For prospective franchisees in these states, the State Addendum is a critical document. It outlines modifications to the standard Ledgers Franchise Disclosure Document and may supersede certain portions of the Franchise Agreement to comply with local state laws. This ensures that the franchise agreement adheres to the specific legal requirements of the franchisee's state of residence or operation.
For example, the California addendum notes that the California Franchise Investment Law provides specific rights concerning termination, transfer, or non-renewal of a franchise. If any terms in the standard Ledgers Disclosure Document are inconsistent with California law, the terms outlined in the addendum will take precedence. Similarly, the Washington Addendum applies if the offer to sell a franchise is accepted in Washington, the purchaser is a Washington resident, or the franchised business will be located or operated in Washington.