Can Ledgers terminate the Franchise Agreement without cause?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate this Agreement for Cause without notice, and without the opportunity for you to cure. "Cause" means:
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- If you do not attend and pass our Initial Training in accordance with our current passing standards;
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- If you are charged with, indicted for, or convicted of a felony or serious misdemeanor involving moral turpitude;
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- If you violate applicable laws, rules or regulations related to any franchise law, antitrust law, or securities law;
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- If you commit fraud, misappropriation, embezzlement, or unfair and deceptive practices;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers can terminate the Franchise Agreement for cause without notice or an opportunity to cure. The FDD specifies that "Cause" includes failing to attend and pass initial training, being charged with or convicted of a felony or serious misdemeanor involving moral turpitude, violating laws related to franchise, antitrust, or securities law, or committing fraud, misappropriation, embezzlement, or unfair and deceptive practices.
However, the agreement does not explicitly state that Ledgers can terminate the agreement without cause. This means that there are specific reasons outlined in the agreement that would allow Ledgers to terminate the agreement.
It is important to note that in certain states like Wisconsin, there are laws in place that may require Ledgers to provide a 90-day written notice of termination and a 60-day period to cure any deficiencies, unless the termination is due to insolvency or bankruptcy. Therefore, prospective franchisees should be aware of the specific termination laws in their state and how they may affect the terms of the Franchise Agreement with Ledgers.