Under what condition can a Ledgers franchisee delegate the operation of the Franchise Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Franchise Business personally, unless you submit to us a Business Manager who attends and successfully completes our Initial Franchisee Training course, and who is not later disapproved by us. However, you will be responsible to ensure that the Business Manager fulfills all your responsibilities under this Agreement. Delegation of tasks to a Business Manager does not reduce any liability that you may have under this Agreement. Furthermore, your Business Manager must sign an employment contract with you containing confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against you or us.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a franchisee must personally operate the Franchise Business unless they designate a Business Manager. To qualify, the Business Manager must attend and successfully complete Ledgers' Initial Franchisee Training course and not be disapproved by Ledgers.
Even with a Business Manager in place, the franchisee remains responsible for ensuring that the Business Manager fulfills all responsibilities outlined in the Franchise Agreement. The franchisee's liability under the agreement is not reduced by delegating tasks to a Business Manager.
Furthermore, the Business Manager must sign an employment contract with the franchisee. This contract must include confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against the franchisee or Ledgers. This ensures that the Business Manager is bound by certain obligations to protect the interests of both the franchisee and the franchisor.