Is Ledgers subject to a currently effective injunctive order relating to the franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following is added at the end of Item 3:
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities,
antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Item 22 clarifies whether the franchisor is subject to any injunctive orders. Specifically, it states that no party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency. It also confirms that Ledgers is not subject to any currently effective order of any national securities association or national securities exchange, or any currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department.
This means that, as of the FDD date, Ledgers is not operating under any court-ordered injunctions or restrictions related to franchise law, securities, antitrust, or other trade regulations. This absence of injunctive orders suggests that Ledgers is in good standing with regulatory bodies and has not been found in violation of relevant laws or regulations that would warrant such an order.
For a prospective franchisee, this information is reassuring. It indicates that Ledgers has not faced legal challenges resulting in injunctive relief, which could disrupt the franchise's operations or business practices. However, it is important to note that this statement reflects the situation at the time of the FDD's issuance, and it is advisable to conduct further due diligence to ensure that no changes have occurred since then.