At what value will Ledgers purchase a Ledgers franchisee's furniture, equipment, signage, fixtures, and supplies after termination?

According to Ledgers' 2025 Franchise Disclosure Document, Ledgers has the option to purchase a franchisee's furniture, equipment, signage, fixtures, and supplies within 30 days of the termination date. The purchase price will be the adjusted book value of these assets.

Adjusted book value is defined as the undepreciated book value of the assets as reported on the franchisee's most recently filed federal tax return before the termination or expiration date. This means Ledgers will pay the original cost of the assets minus any depreciation already claimed for tax purposes.

This clause benefits Ledgers, as it allows them to acquire these assets at a potentially discounted rate, especially if the assets have been significantly depreciated. For a franchisee, this represents a potential source of funds upon termination, but the amount received may be substantially less than the fair market value, depending on the depreciation schedule and the condition of the assets. Franchisees should consult with a financial advisor to understand the potential financial implications of this clause.