What was the amount of write-offs recorded for Ledgers in the provided balance sheet?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
nd unit franchise agreements. Promissory notes boar interest up to 12%. Amounts due as of December 31 are as follows:
| 2 | 024 | 2023 | 2022 | |
|---|---|---|---|---|
| Notes receivable - Principal | $ | $ 40,000 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the write-offs recorded on the balance sheet are detailed in Item 22. For the period ending December 31, 2024, the balance sheet reflects write-offs amounting to $15,847.
This figure represents the amount of accounts receivable that Ledgers determined to be uncollectible and, therefore, removed from its assets. Write-offs are a normal part of business operations, especially when dealing with royalty receivables from franchisees.
Prospective franchisees should understand that these write-offs reflect the financial health of Ledgers and its franchisees. Monitoring write-off trends can provide insights into the effectiveness of Ledgers' franchisee support and the overall economic conditions affecting franchisees' ability to pay royalties. It is important to consider these figures in conjunction with other financial metrics to assess the overall risk and stability of the franchise system.