How much did Ledgers collect in initial franchise fees in 2023?
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 |
LOYALTY BUSINESS SERVICE
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the company collected $113,362 in initial franchise fees during 2023. This figure represents the revenue Ledgers recognized from these fees during that year.
It is important to note that this revenue might not represent the total amount of initial franchise fees Ledgers actually received in 2023. The revenue recognized could include fees collected in prior years but recognized as income in 2023, based on accounting principles.
A prospective franchisee should compare this figure with previous years to identify trends. They should also inquire about Ledgers's accounting practices regarding initial franchise fees to understand how and when these fees are recognized as revenue. This information can help a potential franchisee assess the financial stability and growth of the Ledgers franchise system.