What was the loss before income taxes for Ledgers in 2023?
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 loss before income taxes in 2023 was $(604,600). This figure indicates Ledgers' financial performance before accounting for income tax benefits or expenses. For a prospective franchisee, this number is a crucial indicator of the overall profitability and financial health of the company during that period.
This loss before income taxes is a key metric that potential franchisees should consider when evaluating the financial stability of Ledgers. It provides insight into the company's operational efficiency and its ability to generate revenue against its expenses. A significant loss may raise concerns about the company's financial management and sustainability.
It is important to note that this loss was before any income tax benefits, which, in 2023, amounted to $(98,000). This tax benefit reduced the net loss to $(506,600). Franchisees should analyze these figures in conjunction with other financial data provided in the FDD to gain a comprehensive understanding of Ledgers' financial position and future prospects.