Within how many days of termination must a Ledgers franchisee offer to sell their assets to Ledgers?

According to Ledgers's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, Ledgers has the option to require the franchisee to offer the sale of their business assets. Specifically, the franchisee must offer Ledgers the right to purchase furniture, equipment, signage, fixtures, and supplies within 30 days of the termination date.

The purchase price for these assets will be the adjusted book value, calculated as the undepreciated book value of the assets as reported on the franchisee's most recently filed federal tax return before the termination date. This means Ledgers would be purchasing the assets at their depreciated value as reflected on the franchisee's tax records.

This clause is important for prospective franchisees as it outlines the financial implications of a potential termination. While the franchisee is obligated to offer these assets to Ledgers, Ledgers is not obligated to buy them. If Ledgers declines to purchase the assets, the franchisee is free to dispose of them as they see fit. This post-termination obligation helps to ensure a smooth transition and protects the Ledgers brand by allowing them to maintain control over the assets used in the business.