What was the amount due from related parties for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
o 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 2024 was $630,180. This figure represents the balance of transactions between Ledgers and entities or individuals with a close relationship to the company, such as management or affiliated businesses. These transactions typically involve short-term advances and cost reimbursements.
For a prospective franchisee, this related-party transaction information is important for assessing the financial stability and transparency of Ledgers. A high 'Due from related parties' balance could indicate significant financial reliance on these related entities, which may pose a risk if those entities face financial difficulties. It is also important to note that the amount due from related parties decreased from $1,229,516 in 2023 to $630,180 in 2024.
It is typical for franchisors to engage in transactions with related parties, but the extent and nature of these transactions should be carefully evaluated. Franchisees should seek clarification from Ledgers regarding the nature of these related-party transactions, the terms of repayment, and the potential impact on the franchisor's financial condition. Understanding these relationships can help a franchisee make a more informed investment decision.
Prospective franchisees should consult with a financial advisor to fully understand the implications of related-party transactions on Ledgers's financial health and stability. This due diligence will provide a clearer picture of the financial risks and opportunities associated with investing in a Ledgers franchise.