What was the commission income for Ledgers in 2022?
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 | |||||
| Total Current Assets | 427,275 | 225,139 | 494,312 | ||||
| Non-Current Assets: | |||||||
| Notes receivable, less current portion | = | 634,000 | |||||
| Due from related parties | 630,180 | 1,229,516 | 1,320,815 | ||||
| Deferred tax asset | 715,000 | 611,000 | 513,000 | ||||
| Total Non-Current Assets | 1,345,180 | 1,840,516 | 2,467,815 | ||||
| Total Assets | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 | ||||
| Liabilities and Members' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 15,010 | $ 15,010 | $ 125,974 | ||||
| Accrued expenses | 4,755 | 9,975 | 5,152 | ||||
| Due to related parties | 852,180 | 737,180 | 305,000 | ||||
| Deferred revenue - current | 24,000 | 94,000 | 110,000 | ||||
| Total Current Liabilities | 895,945 | 856,165 | 546,126 | ||||
| Non-Current Liabilities: | |||||||
| Deferred revenue | 83,000 | 53,989 | 711,614 | ||||
| Total Non-Current Liabilities | 83,000 | 53,989 | 711,614 | ||||
| Total Liabilities | 978,945 | 910,154 | 1,257,740 | ||||
| Members' Equity: | |||||||
| Members' equity | 793,510 | 1,155,501 | 1,704,387 | ||||
| Total Members' Equity | 793,510 | 1,155,501 | 1,704,387 | ||||
| Total Liabilities and Members' Equity | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the commission income for the company in 2022 was $21,000. This figure represents income earned specifically from commissions, as opposed to initial franchise fees or royalties. It is important to note that this is the commission income for Ledgers as a whole, not for an individual franchise location.
For a prospective franchisee, this number offers insight into one potential revenue stream for the franchisor. Commission income could be derived from various sources, such as sales of products or services facilitated by Ledgers. Understanding the composition of this income stream can help a franchisee assess the stability and growth potential of the franchise system.
It is important to consider this figure in the context of Ledgers' overall revenue and expenses. While $21,000 in commission income may seem modest compared to other revenue sources like initial franchise fees ($114,383) or other income ($176,466) in 2022, it still contributes to the financial health of the company. A prospective franchisee should investigate how commission income is generated and whether there are opportunities to increase this revenue stream.
Reviewing the trend of commission income over several years, as presented in the FDD, can provide a more comprehensive understanding of its significance. Note that the table does not include commission income for 2023 and 2024. A potential franchisee should ask Ledgers about the absence of these figures and whether this revenue stream is expected to grow, decline, or remain stable in the future.