What was the corporate overhead expense for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer 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.