What was the amount of notes receivable, current, for Ledgers in 2022?
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 &
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the notes receivable, current, was $229,901 in 2022. This figure represents the amount of money owed to Ledgers that is expected to be collected within one year. Notes receivable typically arise from financing area representative and unit franchise agreements. These promissory notes may bear interest up to 12%.
Understanding the nature and collectibility of these notes is important for prospective franchisees. A high amount of notes receivable could indicate that Ledgers is actively financing franchisees, which might be a strategy to expand the franchise network. However, it also carries the risk of potential defaults if franchisees are unable to meet their payment obligations.
For a prospective franchisee, it is advisable to inquire about the terms and conditions of these notes receivable, including the interest rates, repayment schedules, and the criteria Ledgers uses to assess the creditworthiness of its franchisees. Additionally, understanding the historical collection rates and any provisions for bad debt or credit losses would provide a more comprehensive view of the financial health and stability of Ledgers.