What is the geographic limit for the initial fee deferral policy for Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
NCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION at www.dfpi.ca.gov.
The highest interest rate allowed by law in California is ten percent (10%) annually.
Initial Fee Deferral:
Item 5 of the FDD and Section 2.1 of the Franchise Agreement is modified with the addition of the following language:
"The Department of Financial Protection and Innovation requires that the franchisor defer the collection of all initial fees from California franchisees until the franchisor has completed all its pre-opening obligations and franchisee is open for business."
Franchisees must sign a personal guaranty, making you and your spouse individually liable for your financial obligations under the agreement if you are married. The guaranty will place your and your spouse's marital and personal assets at risk, perhaps including your house, if your franchise fails.
Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the initial fee deferral policy is geographically limited to franchisees in California, North Dakota, South Dakota, Virginia, and Minnesota.
For California, the Department of Financial Protection and Innovation mandates that Ledgers defers the collection of all initial fees from California franchisees until Ledgers has completed all its pre-opening obligations and the franchisee is open for business.
For North Dakota, the franchisor defers the collection of all initial fees from North Dakota franchisees until Ledgers has completed all its pre-opening obligations and the franchisee is open for business. For South Dakota, Ledgers defers the collection of all initial fees from South Dakota franchisees until the franchisee is open for business. For Virginia, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires Ledgers to defer payment of the initial franchise fee and other initial payments owed by franchisees to the franchisor until Ledgers has completed its pre-opening obligations under the franchise agreement. For Minnesota, the Minnesota Department of Commerce requires Ledgers to defer payment of the initial franchise fee owed by franchisees to the franchisor until the franchisee has opened the franchised business.