For Illinois franchisees, what must Ledgers complete before collecting initial fees?

According to Ledgers' 2025 Franchise Disclosure Document, the franchisor defers the collection of all initial fees from Illinois franchisees until Ledgers has completed all its pre-opening obligations and the franchisee is open for business. This modification to Item 5 of the FDD and Item 2.1 of the Franchise Agreement is specific to Illinois, as governed by the Illinois Franchise Disclosure Act.

This deferral of initial fees is a significant benefit for prospective Ledgers franchisees in Illinois. It means that franchisees are not required to pay the initial franchise fee until Ledgers has fulfilled its obligations to help them get started, and their business is officially open. This reduces the upfront financial burden on the franchisee and aligns the franchisor's interests with the franchisee's success.

This arrangement provides a level of security for the franchisee, ensuring that Ledgers is committed to providing the necessary support and resources before receiving the initial fee. It is important for potential franchisees to understand all of Ledgers' pre-opening obligations, as this deferral is contingent upon their completion. Franchisees should carefully review Item 5 of the FDD and Item 2.1 of the Franchise Agreement to fully understand the scope of these obligations.