What was the net loss for Ledgers in 2023?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| Cash flows from operating activities: | J.S | ||||
| Net loss | $ | (361,991) | $ (506,600) | $ | (447,527) |
| Adjustments to reconcile net loss to net cash | |||||
| used in operating activities: |
| Previously | As | |
|---|---|---|
| 2023 Restatement | Reported | Restated |
| Net loss | (287,482) | (506,600) |
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 $506,600 in 2023. This figure is part of the cash flow statement, detailing cash flows from operating activities.
It's important to note that the 2023 financial statements were restated due to an error related to a terminated franchise agreement. This restatement increased the reported net loss from a previously reported $(287,482) to $(506,600). The restatement involved writing off a note receivable and deferred revenue that were not properly accounted for when the franchise agreement was terminated.
For a prospective franchisee, this net loss indicates that Ledgers' expenses exceeded its revenue in 2023. While not uncommon for businesses, especially during growth phases, it's crucial to understand the reasons behind the loss. Franchisees should investigate how Ledgers plans to address this loss and improve profitability. Understanding the details behind the restatement and its impact on the financial statements is also essential for assessing the financial stability of Ledgers.