For Ledgers franchises in Maryland, what must the franchisor complete before initial fees and payments are due?

According to Ledgers' 2025 Franchise Disclosure Document, for franchises governed by Maryland Franchise Registration and Disclosure Law, the franchisor must complete its pre-opening obligations under the franchise agreement before initial fees and payments are due from the franchisee. This requirement is based on the franchisor's financial condition, as mandated by the Maryland Securities Commissioner. This modification affects Item 5 of the FDD and Section 2.1 of the Franchise Agreement.

This deferral of initial fees and payments provides a significant benefit to prospective Ledgers franchisees in Maryland. It reduces the upfront financial burden and risk, as franchisees are not required to pay these fees until Ledgers has fulfilled its obligations to help them get started. This arrangement ensures that the franchisee only invests once the franchisor has demonstrated its commitment to providing the necessary support and resources.

This condition is specific to Maryland due to the state's franchise laws and the intervention of the Maryland Securities Commissioner, who requires financial assurance from Ledgers. Prospective franchisees should carefully review Item 5 of the FDD and Section 2.1 of the Franchise Agreement to fully understand the pre-opening obligations that Ledgers must complete before any fees are collected. This ensures both parties are aligned on the requirements and timelines for opening the franchise.