Under what conditions does Ledgers defer initial fees for Hawaii franchisees?

According to Ledgers's 2025 Franchise Disclosure Document, the franchisor defers the collection of all initial fees from Hawaii franchisees under specific conditions. This deferral lasts until Ledgers has completed all its pre-opening obligations and the franchisee is open for business. This modification to Item 5 of the FDD is specific to franchises governed by the Hawaii Franchise Investment Law.

This deferral of initial fees is a significant benefit for prospective Ledgers franchisees in Hawaii. It reduces the upfront financial burden, allowing the franchisee to conserve capital during the initial setup phase. This can be particularly helpful in managing cash flow and ensuring sufficient funds are available for operational expenses.

It is important to note that this deferral is specific to Hawaii and may not apply in other states. Prospective franchisees should carefully review Item 5 of the FDD and consult with Ledgers to fully understand the terms and conditions of the initial fee deferral in their specific state. Additionally, the FDD states that if any terms of the disclosure document are inconsistent with Hawaii's Franchise Investment Law, the terms of the law will take precedence.