What pre-opening obligations must Ledgers complete before receiving the initial franchise fee in Virginia?

According to Ledgers' 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates that Ledgers must complete all pre-opening obligations before they can collect the initial franchise fee and other initial payments from franchisees in Virginia.

This means that Ledgers cannot accept the initial franchise fee from a Virginia-based franchisee until they have fulfilled all of their responsibilities outlined in the franchise agreement related to getting the franchise location ready to open. These pre-opening obligations could include site selection assistance, training, providing operations manuals, and other support services necessary to launch the franchise.

For a prospective Ledgers franchisee in Virginia, this deferral of the initial franchise fee offers a degree of protection. It ensures that Ledgers is invested in providing the necessary support and resources to get the franchise up and running before receiving payment. This arrangement aligns the franchisor's interests with the franchisee's success during the critical pre-opening phase. Franchisees should confirm with Ledgers exactly what constitutes the 'pre-opening obligations' to ensure clarity on when the initial fee becomes due.