For Ledgers franchisees in Illinois, when are initial fees due?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. 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's 2025 Franchise Disclosure Document, the franchisor defers the collection of all initial fees from Illinois franchisees until Ledgers has completed all its pre-opening obligations and the franchisee is open for business. This modification to Item 5 of the FDD and Item 2.1 of the Franchise Agreement is specific to Illinois franchisees due to the Illinois Franchise Disclosure Act.
This deferral of initial fees is a significant benefit for new Ledgers franchisees in Illinois. It allows them to conserve capital during the initial setup phase, ensuring they only pay the initial franchise fee once they are ready to start generating revenue. This can alleviate some of the financial pressure typically associated with launching a new franchise.
It is important for prospective Ledgers franchisees in Illinois to understand all pre-opening obligations to accurately plan for their business launch. They should also confirm with Ledgers the specific criteria that must be met to be considered "open for business" to avoid any misunderstandings about when the initial fee becomes due.