As of December 31, 2023, what was the total amount of accrued interest on notes receivable for Ledgers?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
E 3 - FRANCHISE AGREEMENTS**
Franchise locations consisted of the following as of December 31, 2024:
| Units | ARA Units | |
|---|---|---|
| Units/ARA Units beginning of year | 2 | 1 |
| Units purchased/obtained | *** | 7 2 2 |
| New units opened | 1 | 8 |
| Units Sold | I.E. | |
| Units closed | (1) | |
| Units/A |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the total accrued interest on notes receivable as of December 31, 2023, was $16,607. These notes receivable primarily consist of financed agreements with area representatives and unit franchisees. The promissory notes associated with these agreements bear interest rates of up to 12%.
This figure represents the accumulated interest that Ledgers was entitled to receive on outstanding notes from its franchisees and area representatives as of the end of 2023. It is important to note that this accrued interest is subject to potential credit losses, as indicated by the allowance for credit losses also listed in the table.
Prospective franchisees should understand the terms and conditions of these notes receivable, including the interest rates, repayment schedules, and any associated risks of default. Understanding the financial health and payment behavior of existing franchisees and area representatives can provide valuable insights into the potential collectability of these notes.