For Ledgers franchises in Maryland, what is the dependency for the franchisee to pay initial fees and payments?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Item 5 of the FDD and Section 2.1 of the FA are modified with the addition of the following language:
- "Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. "
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 Ledgers Franchise Disclosure Document, Maryland franchisees benefit from a specific modification regarding the payment of initial fees. The Maryland Securities Commissioner requires a financial assurance based on Ledgers' financial condition. As a result, all initial fees and payments owed by Ledgers franchisees in Maryland are deferred.
This deferral remains in effect until Ledgers completes its pre-opening obligations as outlined in the franchise agreement. This means a new franchisee in Maryland will not have to pay the initial franchise fee upfront. Instead, the payment is delayed until Ledgers has fulfilled its responsibilities in preparing the franchisee to open their business.
This arrangement protects the franchisee by ensuring that Ledgers is committed to providing the necessary support and resources before receiving the initial fees. It also reduces the financial risk for the franchisee during the initial stages of setting up the franchise. This is a notable benefit for franchisees in Maryland compared to those in other states where such deferrals may not be in place.