Does Ledgers defer the collection of initial fees from Hawaii franchisees?

According to Ledgers' 2025 Franchise Disclosure Document, the franchisor defers the collection of all initial fees from Hawaii franchisees. Specifically, Item 5 of the FDD is modified to reflect this deferral. This means that Ledgers will wait to collect the initial franchise fee from franchisees in Hawaii until it has completed all of its pre-opening obligations and the franchisee is open for business.

This deferral of initial fees is a significant benefit for prospective Ledgers franchisees in Hawaii. It reduces the upfront financial burden and allows the franchisee to focus on setting up the business without immediately having to pay the full initial fee. This can be particularly helpful for new franchisees who may be facing other startup costs and financial uncertainties.

It is important for prospective franchisees to carefully review Item 5 of the FDD and the specific language regarding the initial fee deferral to fully understand the terms and conditions. Franchisees should also confirm with Ledgers that all pre-opening obligations have been met before the initial fee becomes due. This deferral is specific to Hawaii, and other states may have different regulations regarding initial fee collection.