Under what circumstances can Ledgers revoke approval of previously approved goods or services?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ture Page to the Franchise Agreement. No change to the owners or ownership percentages are permitted without our prior written consent.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You may offer for sale through your Franchised Business only a business advisory, bookkeeping, payroll, and income tax preparation as specified by us and such products and services that we have approved in writing. We may designate products or services as optional or mandatory. You may not sell any goods or services that we have not authorized or approved.
You may offer your services to any customers consistent with your territorial rights.
You are required to sell all goods or services that we authorize, unless prohibited by your applicable local law, or approved by us. We may change the types of authorized goods and services sold by franchisees. There are no limits on our right to make changes to the authorized goods and services sold by franchisees;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers has the authority to revoke approval of previously approved goods or services at its sole discretion. If Ledgers revokes approval, the franchisee must immediately stop selling the revoked services or products. This means that while a franchisee may initially be authorized to sell certain goods or services, Ledgers retains the right to withdraw that authorization at any time.
This provision gives Ledgers significant control over the products and services offered under the franchise. It also means that a franchisee's revenue streams could be affected if a previously approved and profitable offering is later revoked. The FDD does not specify the reasons Ledgers might revoke approval, indicating that the decision is entirely up to Ledgers.
Prospective franchisees should consider this lack of control and potential for changes to the approved goods and services list as a risk. It would be prudent for a potential franchisee to inquire with Ledgers about the typical reasons for such revocations and whether there have been instances of this occurring with existing franchisees. Understanding the potential volatility of approved offerings is crucial for assessing the long-term viability and profitability of a Ledgers franchise.