For Ledgers franchises in Maryland, why are initial fees and payments deferred?

According to Ledgers' 2025 Franchise Disclosure Document, the Maryland Securities Commissioner requires a financial assurance based on the franchisor's financial condition. As a result, Ledgers defers all initial fees and payments owed by franchisees in Maryland until it completes its pre-opening obligations under 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 do not have to pay these fees until Ledgers has fulfilled its obligations to help them get started. This arrangement protects the franchisee's investment by ensuring that Ledgers is committed to providing the necessary support and resources before receiving payment.

It's important for potential franchisees to understand what constitutes the franchisor's "pre-opening obligations" as defined in the franchise agreement. This will clarify the specific milestones Ledgers must achieve before the initial fees become due. Prospective franchisees should carefully review Item 5 of the FDD and Section 2.1 of the Franchise Agreement, as referenced in the disclosure, to fully understand the conditions and timing of these deferred payments.