What was the amount due from related parties for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
doubt about Loyalty Business Services, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Bernard Robinson & Company, I.S.P.
Raleigh, North Carolina April 28, 2025
${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$
Balance Sheets
December 31, 2024, 2023 and 2022
| 2 | Assets | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Current Assets: | S | ||||||
| Cash and cash equivalents | $ 424,085 | $ 181 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the amount due from related parties in 2022 was $1,320,815. This figure represents the balance of transactions between Ledgers and its related entities, such as short-term advances and cost reimbursements, as of December 31, 2022.
This "Due from related parties" balance is categorized as a non-current asset on Ledgers's balance sheet. This means that Ledgers expected these amounts to be collected from related parties beyond the next 12 months. For a prospective franchisee, this indicates the level of financial interaction Ledgers has with its related entities and provides insight into the company's financial structure.
It's important to note that these related party transactions are part of the normal course of business for Ledgers. These transactions are substantially due to short term advances and cost reimbursements. Reviewing these balances over the years (2022-2024) can show trends and the consistency of these transactions. A significant fluctuation could warrant further investigation to understand the underlying reasons and potential implications.