What was the net change in the number of franchised Ledgers outlets during 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlet Type | Year | Outlets at the Start of Year | Outlets at the End of Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 7 | 8 | 1 |
| 2023 | 8 | 4 | -4 | |
| 2024 | 4 | 2 | -2 | |
| Company | 2022 | 0 | 0 | 0 |
| Owned | 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | |
| Total Outlets | 2022 | 7 | 8 | +1 |
| 2023 | 8 | 4 | -4 | |
| 2024 | 4 | 2 | -2 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 42–45)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the net change in the number of franchised outlets during 2024 was -2. At the start of 2024, there were 4 franchised Ledgers outlets, and by the end of the year, this number decreased to 2. This indicates that the number of Ledgers franchises decreased by 2 during that year.
This decrease in franchised outlets could be due to several factors, such as franchisees not renewing their agreements, terminations, or transfers not being replaced by new openings. It is important to note that this net change reflects the overall system performance and may not necessarily indicate the performance of individual franchise locations. A prospective franchisee should investigate the reasons behind this decrease to understand the potential risks and challenges of operating a Ledgers franchise.
When evaluating a franchise opportunity, it is common practice to review the trends in outlet growth and decline over several years. The Ledgers FDD provides data for 2022, 2023, and 2024, allowing potential franchisees to assess the stability and growth potential of the franchise system. A consistent decline in the number of outlets, as seen between 2023 and 2024, may warrant further investigation and discussion with the franchisor and existing franchisees.
Overall, the net change in franchised outlets is a key metric for assessing the health and attractiveness of a franchise system. While a decrease in outlets does not automatically disqualify a franchise opportunity, it does highlight the need for thorough due diligence and a clear understanding of the factors driving the change.