Does Ledgers defer the collection of initial fees from Illinois franchisees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5 of the FDD and Item 2.1 of the Franchise Agreement are modified with the addition of the following language: 'The franchisor defers the collection of all initial fees from Illinois franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business."
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Ledgers does defer the collection of initial fees from Illinois franchisees. Specifically, Item 5 of the FDD and Item 2.1 of the Franchise Agreement are modified to reflect this deferral.
This means that Ledgers will not collect the initial franchise fee from franchisees in Illinois until Ledgers has fulfilled all of its pre-opening obligations. Furthermore, the franchisee must be open for business before the initial fee is collected.
This deferral could be beneficial for prospective franchisees in Illinois as it reduces the upfront financial burden. It also potentially aligns the franchisor's interests more closely with the franchisee's success, as Ledgers only receives the initial fee once the franchisee is operational.