At what value will Ledgers purchase a Ledgers franchisee's assets upon termination?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- At our option, offer to us the right to purchase your furniture, equipment, signage, fixtures, and supplies within thirty (30) days of the date of termination for the adjusted book value, which is the undepreciated book value of the assets on your most recently filed federal tax return prior to the date of the termination or expiration;
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, Ledgers has the option to purchase a franchisee's assets upon termination of the franchise agreement. Specifically, Ledgers may request to buy the franchisee's furniture, equipment, signage, fixtures, and supplies.
If Ledgers exercises this option, the purchase price will be based on the adjusted book value of the assets. The adjusted book value is defined as the undepreciated book value of these assets as reported on the franchisee's most recently filed federal tax return prior to the date of termination or expiration of the franchise agreement.
This means that a franchisee may be required to sell these assets to Ledgers at a price that reflects their original cost minus any depreciation already claimed for tax purposes. This could be higher or lower than the fair market value of the assets at the time of termination, depending on how quickly they have been depreciated. It is important to note that the franchisee is only obligated to offer these assets to Ledgers if Ledgers chooses to exercise its right to purchase them.