Within a Ledgers protected territory, is competition from company-owned outlets permitted?

According to the 2025 Ledgers Franchise Disclosure Document, a franchisee will receive a protected territory, but this protection has some limitations. Specifically, Ledgers promises not to establish a company-owned or franchised Ledgers location within the franchisee's protected territory. This provides a degree of territorial security, ensuring that the franchisor will not directly compete with the franchisee within their defined geographic area. However, the agreement does state that the franchisee will not receive an exclusive territory.

Despite the protected territory, a Ledgers franchisee may still face competition from other franchisees, outlets that Ledgers owns, other channels of distribution, or competitive brands that Ledgers controls. This means that while Ledgers will not set up a competing Ledgers location within the territory, other forms of competition are possible. For example, another Ledgers franchisee or an affiliate may make sales to a client within the franchisee's territory using other channels of distribution, such as the Internet, catalog sales, or telemarketing.

Furthermore, the FDD states that a client always retains the right to choose the service provider that they believe best meets their needs. This "Client Choice" clause emphasizes that Ledgers cannot guarantee a franchisee exclusive access to clients within their territory. The franchisor also retains the right to implement cross-territorial protocols and guidelines, which may affect how franchisees interact with clients in overlapping territories. Therefore, while Ledgers offers a protected territory, franchisees should be aware of the potential for competition from various sources and the ultimate right of clients to choose their service provider.