Under what condition might Ledgers permit a franchisee to not participate personally in the day-to-day operation of the Franchised Business?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
l Information to any other person or entity or use it for the benefit of any other person or business.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You must participate personally in the day-to-day operation of your Franchised Business unless we permit otherwise in writing. You must devote your time, attention and best efforts to performing your obligations under the Franchise Agreement.
You must designate a Business Manager. If you are an individual, then you must serve as Business Manager. You must inform us in writing of the identity of your Business Manager, furnish information to us regarding the candidate's background, experience and credentials, and secure our advance written approval before you engage him or her. We will not unreasonably withhold or deny our approval. Your Business Manager must have complete decision-making authority with regard to your Franchised Business and must have authority to act on your behalf in all respects under the Franchise Agreement. Your Business Manager is the only individual with whom we will be required to communicate when we seek to communicate with you. Your Business Manager must complete the Initial Training Program to our satisfaction.
If you desire to designate a successor or replacement Business Manager, then you must notify us in writing; identify your proposed successor Business Manager and the reason that your predecessor Business Manager ceased to serve; furnish us with all information we may reasonably request regarding the proposed successor; and, obtain our advance written approval, which we will not unreasonably delay or deny.
You and any Business Manager must pass a background check. However, your Designated Manager is not required to have an equity interest in the franchisee, if it is an entity.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 37–38)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, a franchisee must personally participate in the day-to-day operations of their Ledgers franchise unless Ledgers provides written permission otherwise. To be eligible for this exception, the franchisee must designate a Business Manager who attends and successfully completes Ledgers' Initial Franchisee Training course and is not later disapproved by Ledgers.
The designated Business Manager must have complete decision-making authority regarding the franchised business and the authority to act on the franchisee's behalf in all respects under the Franchise Agreement. Ledgers will only communicate with the Business Manager when they need to communicate with the franchisee.
Even with a Business Manager in place, the franchisee remains responsible for ensuring that the Business Manager fulfills all responsibilities under 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 that contains confidentiality requirements and, to the extent permitted by law, a covenant not to solicit customers or compete against the franchisee or Ledgers.