What is the dependency for Ledgers to collect 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 defers the collection of initial franchise fees from franchisees in Illinois until specific conditions are met. Ledgers will defer collecting initial fees until they have completed all of their pre-opening obligations to the franchisee. Additionally, the franchisee must be open for business before Ledgers collects the initial fees.
This deferral is a modification to Item 5 of the FDD and Item 2.1 of the Franchise Agreement, specifically for Illinois franchisees, due to the Illinois Franchise Disclosure Act. This modification ensures that Ledgers fulfills its obligations to support the franchisee before receiving the initial franchise fee.
This arrangement protects the franchisee by ensuring that Ledgers provides the necessary support and fulfills its pre-opening responsibilities before receiving payment. It also aligns with the Illinois Franchise Disclosure Act, which aims to protect franchisees from unfair practices. Prospective franchisees in Illinois should confirm that these conditions are clearly outlined in their franchise agreement before signing.