Under what condition can Ledgers terminate the Franchise Agreement if the franchisee does not open on time?

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee must be open for business within a specific timeframe after signing the Franchise Agreement. The typical length of time between signing the Franchise Agreement and opening the Ledgers outlet is 3-4 months. However, the document specifies that a franchisee must begin operations and be open for business no later than twelve (12) months from the date both parties execute the Franchise Agreement.

If a Ledgers franchisee fails to meet this deadline, Ledgers has the right to terminate the Franchise Agreement. This termination can occur without any refund to the franchisee. This condition underscores the importance of careful planning and execution in the initial stages of establishing a Ledgers franchise.

This stipulation in the Ledgers Franchise Agreement serves as an incentive for franchisees to promptly establish and commence operations. The one-year timeframe provides a reasonable window for franchisees to address typical challenges such as securing financing, leasing a location, complying with zoning regulations, obtaining necessary licenses and permits, completing construction, managing weather-related delays, acquiring and installing furniture, fixtures, equipment, and signage, and hiring and training staff. Failing to open within this period, however, carries the significant risk of termination without reimbursement, highlighting the need for franchisees to manage their startup process effectively.