What pre-opening obligations must Ledgers complete before collecting initial fees from Illinois franchisees?

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 franchisees in Illinois, as governed by the Illinois Franchise Disclosure Act. This means that Ledgers cannot collect any initial fees from a new Illinois franchisee until all pre-opening obligations have been fulfilled and the franchisee's business is operational.

For a prospective Ledgers franchisee in Illinois, this deferral provides a significant financial benefit. It ensures that the franchisee does not have to pay the initial franchise fee until Ledgers has provided all the necessary support and the business is ready to open. This arrangement reduces the upfront financial burden on the franchisee and aligns the franchisor's interests with the franchisee's success in getting the business off the ground.

This deferral is a notable protection for franchisees in Illinois, ensuring that Ledgers fulfills its pre-opening responsibilities before receiving the initial franchise fee. Prospective franchisees should confirm exactly what Ledgers' pre-opening obligations include to ensure they are fully aware of what Ledgers must deliver before the initial fee becomes due.