table_specific

What was the corporate overhead expense for Ledgers in 2022?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

venue | 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 | | | | |

LOYALTY BUSINESS SERVICES, LLC (FORMERLY FIDE HOLDING, LLC) Statements of Operations

For the Years Ended December 31, 2024, 2023, and 2022

20 24 - 2023 2022
Revenue:
Initial franchise fees $ . 30,336 $ 113,362 $ 114,383
Royalty fees í 36,056 37,528 49,019
Commission income = = 21,000
Other 26,479 - 41,740 176,466
Total revenue 92,871 192,630 360,868
Operating expenses:
Salaries, wages, taxes and benefits 1 74,839 449,440 425,683
Advertising and promotions 2,750 9,910 19,784
Corporate overhead expense 1' 75,805 109,334 58,370
Franchise recruitment 9 95,587 50,925 128,533
Technology expense 9,756 40,525 248,337
Management fees - 15,000 -
Professional fees : 84,627 13,327 61,406
Bad debt expense í 35,657 294,324 -
Other general and administrative e

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the corporate overhead expense for the year 2022 was $58,370. This figure is part of the operating expenses reported in the company's financial statements. Understanding the corporate overhead expense can give potential franchisees insight into how Ledgers manages its central operations and administrative functions.

Corporate overhead typically includes costs like rent for the corporate office, salaries of corporate staff, utilities, and other administrative expenses necessary to run the franchise system. A higher overhead might suggest that Ledgers invests heavily in supporting its franchisees, but it could also indicate inefficiencies in their operations. Conversely, a lower overhead might mean lower costs are passed on to franchisees, but it could also signal a lack of support or investment in key areas.

Prospective franchisees should consider this figure in conjunction with other financial data, such as revenue and other operating expenses, to get a comprehensive view of Ledgers' financial health and efficiency. It's also important to compare this figure with industry benchmarks to see how Ledgers' overhead costs stack up against similar franchise systems. Furthermore, franchisees may want to inquire about specific items included in the corporate overhead to better understand what they are paying for and how it benefits them directly.

Ultimately, understanding Ledgers' corporate overhead expense helps potential franchisees assess the financial stability and operational efficiency of the franchise system, which is a critical factor in making an informed investment decision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.