What was the restated amount for Notes Receivable in the 2023 restatement for Ledgers?

According to Ledgers' 2025 Franchise Disclosure Document, the restated amount for Notes Receivable in the 2023 restatement was $40,760. The original reported amount was $792,878, but this was adjusted due to a prior period adjustment. This adjustment was made because the company's financial statements included balances for a note receivable and deferred revenue for a franchise agreement that was terminated in 2023 but not properly written off.

The restatement involved recognizing the termination of a franchise agreement and recording $219,118 in bad debt expense for the year ended December 31, 2023. It also involved removing a $752,118 note receivable and $533,000 in deferred revenue balances at December 31, 2023. The net effect of these changes was a decrease in members' equity as of January 1.

For a prospective franchisee, this restatement indicates that Ledgers had to correct a significant accounting error related to a terminated franchise agreement. This could raise concerns about the accuracy of Ledgers' financial reporting and internal controls. It is important for potential franchisees to carefully review the audited financial statements and understand the reasons behind the restatement. They may also want to inquire about the company's procedures for ensuring accurate financial reporting in the future.