For Ledgers franchises in Maryland, what is the required action for the franchisor to complete its pre-opening obligations?

According to the 2025 Ledgers 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 collecting any initial fees and payments from franchisees. This requirement is due to a financial assurance required by the Maryland Securities Commissioner based on the franchisor's financial condition. This modification affects Item 5 of the FDD and Section 2.1 of the Franchise Agreement.

This deferral of initial fees provides a significant benefit to new Ledgers franchisees in Maryland. It reduces the upfront financial burden and risk, as franchisees do not have to pay the initial fees until Ledgers has fulfilled its obligations to help them get started. This can be particularly helpful for franchisees who are financing their new business, as it reduces the amount of capital they need to secure upfront.

It's important for prospective Ledgers franchisees in Maryland to understand exactly what constitutes the franchisor's "pre-opening obligations" as defined in the franchise agreement. They should also confirm with Ledgers that all pre-opening obligations have indeed been met before making any initial fee payments. This ensures compliance with Maryland law and protects the franchisee's investment.

This requirement is specific to Maryland due to the state's franchise laws and the Maryland Securities Commissioner's assessment of Ledgers's financial condition. Franchisees in other states may not have the same protection, highlighting the importance of understanding the specific regulations in the state where the franchise will operate.