According to Ledgers' 2025 Franchise Disclosure Document, the collection of initial fees from franchisees in South Dakota is deferred until a specific event occurs. Specifically, Ledgers will defer collecting initial franchise fees from South Dakota franchisees until the franchisee is open for business.

This deferral of initial fees can be a significant benefit for new Ledgers franchisees in South Dakota. It reduces the upfront financial burden, allowing them to allocate their initial capital towards setting up their business and covering operational costs. This can be particularly helpful in the early stages when cash flow is often tight.

It is important to note that while the initial fee is deferred, it is not waived. The franchisee will still be responsible for paying the fee once they are open and operating. Prospective franchisees should carefully consider their financial situation and ensure they have a plan to meet this obligation when it becomes due. This type of deferral is not uncommon, as other states like California, North Dakota, and Virginia have similar stipulations regarding initial fee deferrals until certain pre-opening obligations are met or the business is open.