Under what circumstances can a Ledgers franchisee provide services outside their territory?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not provide Services to Clients outside of your Territory without our written permission. We may grant or deny permission in our sole judgment. In no event will you be permitted to offer Services to any Client within a territory owned by another unit franchisee. Should we grant permission, it will be freely revocable by us for any reason or no reason at all. Further, you must immediately stop providing Services to any Client located outside of your Territory immediately upon notice that a new franchisee has purchased such territory. Furthermore, if permission is granted, you must immediately stop providing Services to any such Client.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, a franchisee is generally restricted from providing services to clients outside of their designated territory without explicit written permission from Ledgers. This permission is not guaranteed and can be granted or denied at Ledgers's discretion. Even if permission is initially granted, Ledgers retains the right to revoke it at any time, for any reason.
Furthermore, a Ledgers franchisee must immediately cease providing services to any client located outside their territory if Ledgers notifies them that a new franchisee has purchased that territory. This condition ensures that new franchisees have the exclusive right to serve clients within their territory without competition from existing franchisees.
This policy has significant implications for Ledgers franchisees. It highlights the importance of securing a territory that can sustain their business and the potential risk of losing clients if they are located outside the franchisee's primary territory. Prospective franchisees should carefully consider the size and demographics of their territory and discuss with Ledgers the potential for expansion or the process for obtaining permission to serve clients outside their territory.