For Ledgers franchises in Maryland, what is the condition that triggers the deferral of initial fees and payments?

According to Ledgers' 2025 Franchise Disclosure Document, for franchises governed by the Maryland Franchise Registration and Disclosure Law, the collection of initial fees and payments is deferred until Ledgers completes its pre-opening obligations under the franchise agreement. This modification to Item 5 of the FDD and Section 2.1 of the Franchise Agreement is based on a financial assurance required by the Maryland Securities Commissioner due to Ledgers' financial condition.

This deferral of initial fees and payments provides a benefit to prospective Ledgers franchisees in Maryland, as they are not required to pay these fees until Ledgers has fulfilled its obligations to help them get started. This can reduce the initial financial burden on the franchisee and align the franchisor's interests with the franchisee's success in opening the business.

It is important for potential franchisees to understand what constitutes Ledgers' pre-opening obligations, as this will determine when the initial fees become due. They should carefully review the franchise agreement and discuss these obligations with Ledgers to ensure they have a clear understanding of the timeline and requirements. This deferral is specifically tied to Ledgers' financial condition as assessed by the Maryland Securities Commissioner, so it's a condition that is subject to change based on the franchisor's financial status.