What was the amount of deferred revenue for Ledgers (non-current) in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2 | Assets | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Current Assets: | S | ||||||
| Cash and cash equivalents | $ 424,085 | $ 181,077 | $ 264,411 | ||||
| Royalty receivables | 3,190 | 3,302 | - | ||||
| Notes receivable, current | 40,760 | 229,901 | |||||
| Total Current Assets | 427,275 | 225,139 | 494,312 | ||||
| Non-Current Assets: | |||||||
| Notes receivable, less current portion | = | 634,000 | |||||
| Due from related parties | 630,180 | 1,229,516 | 1,320,815 | ||||
| Deferred tax asset | 715,000 | 611,000 | 513,000 | ||||
| Total Non-Current Assets | 1,345,180 | 1,840,516 | 2,467,815 | ||||
| Total Assets | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 | ||||
| Liabilities and Members' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 15,010 | $ 15,010 | $ 125,974 | ||||
| Accrued expenses | 4,755 | 9,975 | 5,152 | ||||
| Due to related parties | 852,180 | 737,180 | 305,000 | ||||
| Deferred revenue - current | 24,000 | 94,000 | 110,000 | ||||
| Total Current Liabilities | 895,945 | 856,165 | 546,126 | ||||
| Non-Current Liabilities: | |||||||
| Deferred revenue | 83,000 | 53,989 | 711,614 | ||||
| Total Non-Current Liabilities | 83,000 | 53,989 | 711,614 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company's non-current deferred revenue for 2024 was $83,000. This deferred revenue represents payments Ledgers has received for services or goods that have not yet been fully earned or delivered. In the franchise context, this often relates to initial franchise fees or other upfront payments that are recognized over the term of the franchise agreement.
For a prospective Ledgers franchisee, understanding deferred revenue is important because it reflects the company's financial obligations to provide future services. The fact that Ledgers has $83,000 in non-current deferred revenue suggests that it has ongoing obligations related to franchise agreements extending beyond the next year.
It is also important to note that the FDD includes a prior period adjustment related to deferred revenue. During 2024, Ledgers identified an error related to a franchise agreement terminated in 2023, which led to a restatement of financial statements. This restatement involved removing $533,000 in deferred revenue balances at December 31, 2023. This adjustment indicates that Ledgers has taken steps to correct past accounting errors, which could provide more confidence in the accuracy of its current financial reporting.