According to Ledgers' 2025 Franchise Disclosure Document, the collection of initial fees is deferred for franchisees in South Dakota. Specifically, Ledgers will not collect the initial franchise fee 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 can be a significant benefit for new Ledgers franchisees in South Dakota. It reduces the upfront financial burden, allowing them to allocate their initial capital towards setting up their business and covering operational expenses. This can be particularly helpful in the early stages when revenue may be lower.

It's important for prospective franchisees to understand that while the initial fee is deferred, it is still due once the business is operational. Franchisees should plan their finances accordingly to ensure they can meet this obligation when the time comes. This deferred payment structure may also influence the franchisee's ability to secure financing, as lenders may view it differently than a traditional upfront payment.