Does termination or expiration of the Ledgers Franchise Agreement relieve any duties to comply with provisions requiring post-termination performance?

According to the 2025 Ledgers Franchise Disclosure Document, the expiration or termination of the Franchise Agreement does not relieve a franchisee of the duties to comply with the provisions of the agreement that require performance post-termination. This means that even after the franchise agreement ends, certain obligations, such as non-compete clauses or confidentiality agreements, remain in effect and must be adhered to by the franchisee.

Specifically, upon termination or expiration of the Ledgers agreement, the franchisee must cease operating the franchised business, discontinue using Ledgers' marks, cancel any fictitious name filings that include Ledgers' marks, pay all outstanding amounts owed to Ledgers, and reimburse clients for fees paid for services not yet rendered. Additionally, the franchisee must transfer telephone numbers used in relation to the franchise business if requested, assist in transferring the lease of the facility if requested, and return or certify the destruction of any paper and electronic copies of the manual and confidential information.

Furthermore, the franchisee must adhere to post-term non-compete and non-solicitation duties, offer Ledgers the right to purchase furniture, equipment, signage, fixtures, and supplies, abide by any other covenant in the agreement that requires performance after the franchisee is no longer a franchisee, and refrain from making disparaging comments about Ledgers or its employees, agents, members, directors, or franchisees. These obligations are designed to protect Ledgers' interests and maintain the integrity of the franchise system even after an individual franchise ceases to operate.