factual

Does the Ledgers FDD specify any modifications to Item 17.w. for franchisees in South Dakota?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

SOUTH DAKOTA

Initial Fee Deferral:

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 South Dakota franchisees until the franchisee is open for business."

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to the 2025 Ledgers Franchise Disclosure Document, there are no specified modifications to Item 17.w for franchisees in South Dakota. However, the FDD does state that the franchisor defers the collection of all initial fees from South Dakota franchisees until the franchisee is open for business. This modification applies to Item 5 of the FDD and Item 2.1 of the Franchise Agreement.

This deferral of initial fees could be a significant benefit for prospective franchisees in South Dakota, as it reduces the upfront financial burden of starting the franchise. Instead of paying the initial fees before opening, franchisees can delay payment until they are operational and potentially generating revenue. This can help with cash flow management during the initial startup phase.

While there are no specific modifications to Item 17.w, the initial fee deferral is a notable financial incentive for franchisees in South Dakota. Prospective franchisees should carefully review Item 5 of the FDD and Item 2.1 of the Franchise Agreement to fully understand the terms and conditions of this deferral.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.