What condition triggers the deferral of initial fees and payments for Ledgers franchisees in Maryland?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Item 5 of the FDD and Section 2.1 of the FA are modified with the addition of the following language:
- "Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. "
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the deferral of initial fees and payments for franchisees in Maryland is triggered by the franchisor's financial condition. Specifically, the Maryland Securities Commissioner requires a financial assurance based on Ledgers's financial state. As a result, all initial fees and payments owed by franchisees in Maryland are deferred.
This deferral remains in effect until Ledgers completes its pre-opening obligations as outlined in the franchise agreement. This means a new Ledgers franchisee in Maryland won't have to pay the initial franchise fee upfront. Instead, they can delay payment until Ledgers has fulfilled its responsibilities, such as providing training, site selection assistance, and other support services necessary to get the franchise location ready for business.
This condition offers a significant benefit to prospective Ledgers franchisees in Maryland. It reduces the initial financial burden and risk, as franchisees don't have to invest heavily before seeing tangible progress. It also incentivizes Ledgers to promptly fulfill its pre-opening obligations, ensuring that franchisees can start generating revenue as soon as possible. This type of financial assurance is not typical in all franchise systems, so it represents a potentially favorable condition for franchisees in Maryland.