What was the amount of notes receivable, current, for Ledgers in 2023?
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 |
| Previously | As | |
|---|---|---|
| 2023 Restatement | Reported | Restated |
| Members' equity - January 1, 2024 | $1,374,619 | $1,155,501 |
| Notes Receivable | 792,878 | 40,760 |
NOTE 4 - NOTES RECEIVABLE
Notes receivable consists of financed area representative and unit franchise agreements. Promissory notes boar interest up to 12%. Amounts due as of December 31 are as follows:
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the notes receivable, current, was $40,760 in 2023. 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 arrangements related to area representative and unit franchise agreements, with promissory notes bearing interest up to 12%.
It is important to note that the financial statements for 2023 were restated due to an error related to a terminated franchise agreement. The restatement involved writing off a note receivable of $752,118 and deferred revenue balances of $533,000. The restated notes receivable balance of $40,760 reflects these adjustments.
Additionally, the notes receivable balance is subject to an allowance for credit losses. This allowance represents management's best estimate of the amount of notes receivable that may not be collectible. Understanding the nature of these notes receivable, their terms, and the collectibility is crucial for assessing the financial health of Ledgers. A prospective franchisee should inquire about the specific details of these notes, including the parties involved, repayment schedules, and any collateral securing the notes.