According to Ledgers' 2025 Franchise Disclosure Document, for franchisees in South Dakota, Item 5 of the FDD and Item 2.1 of the Franchise Agreement are modified to defer the collection of all initial fees until the franchisee is open for business. This means that a new Ledgers franchisee in South Dakota will not be required to pay the initial franchise fee before their business is operational.

This deferral of initial fees can be a significant benefit for new franchisees as it reduces the upfront financial burden. Instead of paying the fee immediately, the franchisee can use those funds for other startup costs such as securing a location, purchasing equipment, or initial marketing efforts. This can improve the franchisee's cash flow during the critical early stages of the business.

It is important for prospective Ledgers franchisees in South Dakota to understand the specific conditions and requirements related to this fee deferral. While the initial fee is deferred, it is still an obligation that must be met once the business is open. Franchisees should carefully plan their finances to ensure they can pay the fee when it becomes due. This deferral policy is specific to South Dakota, as other states have different regulations or modifications to the franchise agreement.