Under what circumstances can Ledgers impose an interim remedy?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
If we send you a written notice that you are in default of this Agreement, the Operations Manual, or any other agreement with us, we may elect to immediately impose an interim remedy (the "Interim Remedies"), regardless of whether the default is curable, including the suspension of our obligations under this Agreement. You understand, acknowledge, and agree that our exercise of our right to
impose Interim Remedies will not result in actual or constructive termination or abandonment of this Agreement, and that our right to Interim Remedies is in addition to, and apart from, any other right or remedy we may have in this Agreement. If we exercise the right to Interim Remedies, the exercise will not be a waiver of any breach by you of any term, covenant or condition of this Agreement. You will not be entitled to any compensation, including repayment, reimbursement, refund or offsets, for any fees, charges, expenses or losses you may directly or indirectly incur by reason of our exercise and/or withdrawal of any Interim Remedy. Interim Remedies include:
- (a) we may suspend the provision of all technology and software services provided to you pursuant to this Agreement, including any tax, accounting or bookkeeping software and/or website services; and
- (b) we may suspend our ongoing support, and the performance of all other obligations set forth in Section 3 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers may elect to immediately impose an interim remedy if they send a franchisee written notice that they are in default of the Franchise Agreement, the Operations Manual, or any other agreement with them. This is regardless of whether the default is curable, including the suspension of Ledgers' obligations under the agreement.
The FDD specifies that the franchisee understands, acknowledges, and agrees that Ledgers' exercise of their right to impose Interim Remedies will not result in actual or constructive termination or abandonment of the agreement. The right to Interim Remedies is in addition to, and apart from, any other right or remedy Ledgers may have in the agreement. If Ledgers exercises the right to Interim Remedies, the exercise will not be a waiver of any breach by the franchisee of any term, covenant, or condition of the agreement.
The franchisee will not be entitled to any compensation, including repayment, reimbursement, refund, or offsets, for any fees, charges, expenses, or losses they may directly or indirectly incur by reason of Ledgers' exercise and/or withdrawal of any Interim Remedy. Interim Remedies include Ledgers suspending the provision of all technology and software services, including any tax, accounting, or bookkeeping software and/or website services, and suspending their ongoing support, and the performance of all other obligations set forth in Section 3 of the agreement.
This clause gives Ledgers broad latitude to act swiftly in response to a perceived default, even before the franchisee has an opportunity to cure the issue. The franchisee bears the risk of losses incurred due to the interim remedies, without recourse. Prospective franchisees should carefully consider the implications of this clause and seek legal counsel to fully understand their rights and obligations.