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

According to Ledgers' 2025 Franchise Disclosure Document, the collection of initial franchise fees from Illinois franchisees is deferred under specific conditions. The FDD states that Ledgers will defer the collection of all initial fees from Illinois franchisees until the franchisor has completed all its pre-opening obligations and the franchisee is open for business. This modification is applicable to both Item 5 of the FDD and Item 2.1 of the Franchise Agreement.

This deferral provides a significant benefit to new Ledgers franchisees in Illinois. It alleviates the upfront financial burden, allowing them to conserve capital during the initial setup phase of their business. Instead of paying the initial fee before operations begin, franchisees can use those funds for essential startup costs such as securing office space, purchasing equipment, and initial marketing efforts.

This policy aligns the franchisor's interests with the franchisee's success. Ledgers is incentivized to provide comprehensive pre-opening support to ensure the franchisee can launch their business as quickly and efficiently as possible. This deferred payment structure reduces the financial risk for the franchisee, as they only pay the initial fee once they are ready to start generating revenue.

It is important for prospective franchisees to understand all the pre-opening obligations that Ledgers must fulfill before the initial fee becomes due. Franchisees should also confirm the payment schedule and any other conditions related to the deferred fee to ensure they are fully prepared for their financial obligations.