According to Ledgers' 2025 Franchise Disclosure Document, the net deferred tax asset for the company in 2024 was $715,000. The FDD also provides figures for the gross deferred tax assets, breaking them down into federal and state amounts. The gross deferred tax assets for federal taxes were $588,000 and for state taxes were $127,000 in 2024.

Deferred tax assets typically arise when a company has overpaid taxes or has tax deductions or credits available that can be used to reduce future tax liabilities. These assets are recorded on the balance sheet and represent a future benefit to the company. The net deferred tax asset is the total amount of deferred tax assets, reduced by any valuation allowance.

For a prospective Ledgers franchisee, understanding the company's deferred tax assets can provide insight into its financial health and future tax obligations. A significant net deferred tax asset could indicate that Ledgers has opportunities to reduce its tax burden in the coming years, which could free up cash flow for growth and development. However, it's important to note that the realization of these assets depends on Ledgers' future profitability and ability to utilize the available tax benefits.