Are the terms and conditions for establishing Franchised Businesses outside of my Ledgers territory documented in the Franchise Agreement?

According to Ledgers's 2025 Franchise Disclosure Document, the company retains the right to establish Franchised Businesses outside of a franchisee's territory under terms and conditions that Ledgers deems appropriate. This means that while a franchisee is granted a territory, Ledgers is not restricted from expanding elsewhere, potentially impacting market opportunities for individual franchisees.

Ledgers reserves all rights not expressly granted in the Franchise Agreement, including the right to establish and operate, and grant rights to others to establish and operate Franchised Businesses or similar businesses at any locations outside of the Territory and on any terms and conditions they deem appropriate. This clause gives Ledgers considerable latitude in its expansion strategy, which could lead to increased competition for franchisees.

This is a fairly standard practice in franchising, where franchisors need the flexibility to grow and adapt to market conditions. However, prospective Ledgers franchisees should carefully consider the implications of this clause, particularly how Ledgers defines "appropriate" terms and conditions and how these might affect their business. It would be prudent to discuss Ledgers's expansion plans and strategies during the due diligence process to fully understand the potential competitive landscape.