What was the net loss for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | (82,735) | | (6,284) | | Other income | | = | | (115,395) | | 554 | | Other expense | | 485 | | 4,014 | | 3,246 | | Total other (income) expense | (2 | 24,290) | | (194,116) | _ | (2,484) | | Loss before income taxes | (4 | 65,991) | | (604,600) | | (600,527) | | Income tax benefit | (1 | 04,000) | | (98,000) | , | (153,000) | | Net loss | $ (30 | 61,991) | $ | (506,600) | $ | (447,527) |
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Statements of Changes in Members' Equity
For the Years Ended December 31, 2024, 2023, and 2022
| | Capital Contributions | Accumulated Deficit | Total | |----------------------
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company experienced a net loss of $447,527 in 2022. This figure represents the amount by which Ledgers' expenses exceeded its revenues during that year.
For a prospective franchisee, understanding the franchisor's financial performance is crucial. A net loss indicates that the company is not currently profitable, which could raise concerns about its financial stability and ability to support its franchisees. However, it's essential to consider the context of this loss. Was it a one-time event due to unusual circumstances, or is it part of a longer-term trend?
Additionally, the FDD also shows a restated net loss of $506,600 for 2023, which was adjusted due to a prior period adjustment. This restatement involved correcting errors related to a terminated franchise agreement, including writing off a note receivable and adjusting deferred revenue balances. While the 2022 net loss provides a snapshot of that year, the subsequent restatement and continued losses into 2023 and 2024 (with a net loss of $361,991) suggest potential ongoing financial challenges for Ledgers. A potential franchisee should investigate the reasons for these losses and the steps Ledgers is taking to improve its financial performance.