What was the amount of royalty receivables for Ledgers in 2023?
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 matte
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the royalty receivables for 2023 were $3,302. This figure represents the amount Ledgers expected to collect from outstanding royalty balances at the end of that year. Royalty receivables are considered current assets, reflecting their short-term nature and expected conversion to cash within a year.
Ledgers's approach to royalty receivables involves stating them at the amount management anticipates collecting. The company assesses potential credit losses by considering factors such as the age of outstanding receivables, historical loss patterns, the customer's ability to pay, and the overall economic and industry conditions. This proactive management of receivables helps Ledgers maintain a clear picture of its financial health and expected income.
It's worth noting that Ledgers writes off accounts receivable when they are deemed uncollectible. Any subsequent payments received on these written-off receivables are then credited against credit loss expense. As of December 31, 2024, 2023, and 2022, management determined that there was no allowance for credit losses related to royalty receivables.