For Ledgers franchises in Maryland, what specific pre-opening obligations must the franchisor complete before initial fees and payments are owed?

According to Ledgers's 2025 Franchise Disclosure Document, for franchises governed by Maryland Franchise Registration and Disclosure Law, the collection of initial fees and payments from franchisees 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 due to a financial assurance required by the Maryland Securities Commissioner based on Ledgers's financial condition.

This means that a prospective Ledgers franchisee in Maryland will not be required to pay the initial franchise fee or any other initial payments until Ledgers has fulfilled all of its obligations to help the franchisee get their business up and running. These pre-opening obligations are detailed elsewhere in the Franchise Agreement but are not specified in this excerpt.

This deferral of fees provides a significant benefit to the franchisee, as it reduces the upfront financial risk. The franchisee can be more confident that Ledgers is committed to supporting them through the initial setup phase before any payments are made. However, it is important for the franchisee to understand exactly what constitutes Ledgers's pre-opening obligations to ensure both parties are aligned on expectations and timelines.