What was the amount of royalty receivables for Ledgers in 2024?
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' 2025 Franchise Disclosure Document, the royalty receivables for 2024 were $3,190. This figure represents the amount of royalty fees that Ledgers was owed by its franchisees as of the end of the year, which the company expected to collect.
It's important to note that Ledgers' management determined that there was no allowance for credit losses related to royalty receivables as of December 31, 2024, 2023, and 2022. This indicates that Ledgers believed all royalty receivables were fully collectible during those years. However, a separate note indicates that the company entered into a franchise agreement in 2024 with a member of management, and the total outstanding royalty receivables from this agreement at the end of 2024 was $560.
Prospective franchisees should understand how Ledgers manages and accounts for royalty receivables, including the criteria for determining collectibility and the potential impact of uncollectible accounts on the company's financial performance. Understanding these accounting practices can provide insight into the financial health and stability of the Ledgers franchise system.