What accounting standards does Ledgers use to prepare its financial statements?

According to Ledgers' 2025 Franchise Disclosure Document, the company prepares its financial statements on the accrual basis of accounting. This is done in accordance with accounting principles generally accepted in the United States of America.

The accrual basis of accounting means that revenues and expenses are recognized when they are earned or incurred, regardless of when cash changes hands. This method provides a more accurate picture of a company's financial performance over a period of time compared to the cash basis of accounting, where revenues and expenses are recognized only when cash is received or paid.

For a prospective Ledgers franchisee, this indicates that the financial information presented in the FDD is prepared using standard and widely accepted accounting practices. This should allow for a reasonable comparison against other franchise opportunities or business ventures that also adhere to these accounting principles. Furthermore, it suggests that Ledgers maintains a level of financial reporting rigor that is consistent with U.S. standards.