Who required a financial assurance based on Ledgers' financial condition in Maryland?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Item 5 of the FDD and Section 2.1 of the FA are modified with the addition of the following language:
- "Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement. "
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the Maryland Securities Commissioner required a financial assurance based on Ledgers' financial condition. This requirement modifies Item 5 of the FDD and Section 2.1 of the Franchise Agreement.
Specifically, due to Ledgers' financial condition, all initial fees and payments owed by franchisees in Maryland are deferred. This deferral remains in effect until Ledgers completes its pre-opening obligations as outlined in the franchise agreement.
This modification protects new Ledgers franchisees in Maryland. It ensures that franchisees do not pay initial fees until Ledgers has fulfilled its obligations to help them get started. Prospective franchisees should confirm with Ledgers what specific pre-opening obligations trigger the release of the deferred fees.