What was the amount of Ledgers' accounts receivable from Loyalty LLC as of December 31, 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
ssified to conform to the current year presentation.
Subsequent Events
The Company has evaluated events and transactions for potential recognition or disclosure through April 28, 2025, which is the date the financial statements were available to be issued.
NOTE 2 - RELATED PARTY TRANSACTIONS
During the ordinary course of business, the Company enters into certain transactions with related parties substantially due to short term advances and cost reimbursements. The Company had related party transactions reco
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the accounts receivable from Loyalty LLC was $610,180 as of December 31, 2024. The FDD also provides figures for previous years, with accounts receivable from Loyalty LLC being $1,209,516 as of December 31, 2023, and $1,300,815 as of December 31, 2022.
Accounts receivable represents money owed to Ledgers by Loyalty LLC for services or goods provided on credit. The decrease in accounts receivable from 2023 to 2024 could indicate a change in payment patterns, a reduction in the volume of services provided to Loyalty LLC, or the write-off of uncollectible amounts.
For a prospective franchisee, this information is useful for understanding the financial relationship between Ledgers and Loyalty LLC. It's important to investigate the nature of these transactions and the creditworthiness of Loyalty LLC to assess the risk associated with these receivables. Understanding the collectability of these receivables is crucial for evaluating the overall financial health of Ledgers.