Within how many days of termination must a Ledgers franchisee offer Ledgers the right to purchase their assets?
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, a franchisee must offer Ledgers the option to purchase their assets within 30 days of the termination date. Specifically, Ledgers has the option to purchase the franchisee's furniture, equipment, signage, fixtures, and supplies.
The purchase price for these assets will be the adjusted book value. This is calculated 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 clause ensures that Ledgers has the opportunity to maintain brand consistency and potentially ease the transition for a new franchisee taking over the location. It also provides a defined timeframe for the outgoing franchisee to handle the disposition of business assets, potentially simplifying the closing process. However, the franchisee is only obligated to offer the assets; Ledgers is not required to purchase them.