Is Ledgers subject to any currently effective injunctive or restrictive order relating to the franchise?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Ledgers states that it is not subject to any currently effective injunctive or restrictive order or decree relating to the franchise. This extends to orders under federal, state, or Canadian franchise, securities, antitrust, trade regulation, or trade practice law resulting from concluded or pending actions brought by a public agency.
Additionally, Ledgers confirms it is not subject to any currently effective order from any national securities association or exchange, as defined by the Securities and Exchange Act of 1934, that would suspend or expel the company from membership. The company also affirms that it is not subject to 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, including actions affecting a license as a real estate broker or sales agent.
This statement provides reassurance to potential franchisees that Ledgers is not currently facing legal restrictions that could impact its ability to operate or support its franchisees. However, it is important for prospective franchisees to conduct their own due diligence and seek legal counsel to fully understand the implications of this statement and any potential risks associated with investing in a Ledgers franchise.