What is the 'Territory' mentioned in the Ledgers Franchise Agreement?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You will receive a geographic area within which we promise not to establish either a companyowned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service Marks. A geographic area will normally include a population of 65,000 residents and at least 3,500 business as defined by our marketing programs, as determined by the U.S. Census Bureau, or other mapping data that we feel is reliable. Schedule 1 defines your "Territory" by zip codes, political, or geographic boundaries.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, the 'Territory' refers to the geographic area within which Ledgers promises not to establish another company-owned or franchised outlet selling similar services under the same trademarks. This area typically includes a population of 65,000 residents and at least 3,500 businesses, as determined by the U.S. Census Bureau or other reliable mapping data. The specific boundaries of the territory are defined in Schedule 1 of the Franchise Agreement, using zip codes, political boundaries, or geographic boundaries.
While Ledgers grants a protected territory, it is not an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Ledgers. However, Ledgers promises not to establish a company-owned or franchised Ledgers location within the franchisee's protected territory. This means that while other Ledgers-affiliated or competitive businesses may operate in the same area, the franchisor will not directly establish a competing Ledgers outlet within the defined territory.
Ledgers retains the right to make sales within the franchisee's territory using different trademarks, including through its affiliate ATAX LLC. Additionally, other franchisees or affiliates may make sales to clients within the territory through channels like the Internet, catalog sales, or telemarketing. Ledgers is not obligated to compensate franchisees for sales solicited or accepted from clients inside their territory, but will normally direct inquiries for services from within the territory to the franchisee's business.
Franchisees may not provide services to clients outside of their territory without written permission from Ledgers, which may be granted or denied at Ledgers's sole discretion. If permission is granted, it can be revoked at any time. Franchisees must immediately cease providing services to any client located outside their territory upon notice that a new franchisee has purchased that territory. The franchisee can operate their Ledgers office from home or a commercial location within their territory, and must begin operations within twelve months of the effective date.