What was the royalty fee income for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2 | Assets | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Current Assets: | S | ||||||
| Cash and cash equivalents | $ 424,085 | $ 181,077 | $ 264,411 | ||||
| Royalty receivables | 3,190 | 3,302 | - | ||||
| Notes receivable, current | 40,760 | 229,901 | |||||
| Total Current Assets | 427,275 | 225,139 | 494,312 | ||||
| Non-Current Assets: | |||||||
| Notes receivable, less current portion | = | 634,000 | |||||
| Due from related parties | 630,180 | 1,229,516 | 1,320,815 | ||||
| Deferred tax asset | 715,000 | 611,000 | 513,000 | ||||
| Total Non-Current Assets | 1,345,180 | 1,840,516 | 2,467,815 | ||||
| Total Assets | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 | ||||
| Liabilities and Members' Equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ 15,010 | $ 15,010 | $ 125,974 | ||||
| Accrued expenses | 4,755 | 9,975 | 5,152 | ||||
| Due to related parties | 852,180 | 737,180 | 305,000 | ||||
| Deferred revenue - current | 24,000 | 94,000 | 110,000 | ||||
| Total Current Liabilities | 895,945 | 856,165 | 546,126 | ||||
| Non-Current Liabilities: | |||||||
| Deferred revenue | 83,000 | 53,989 | 711,614 | ||||
| Total Non-Current Liabilities | 83,000 | 53,989 | 711,614 | ||||
| Total Liabilities | 978,945 | 910,154 | 1,257,740 | ||||
| Members' Equity: | |||||||
| Members' equity | 793,510 | 1,155,501 | 1,704,387 | ||||
| Total Members' Equity | 793,510 | 1,155,501 | 1,704,387 | ||||
| Total Liabilities and Members' Equity | $ 1,772,455 | $ 2,065,655 | $ 2,962,127 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers's 2025 Franchise Disclosure Document, the royalty fee income for the company in 2022 was $49,019. This figure represents the total income Ledgers received from royalty fees paid by its franchisees during that year. Royalty fees are a standard component of franchise agreements, typically calculated as a percentage of the franchisee's gross revenues.
For a prospective Ledgers franchisee, this information provides insight into the revenue streams of the franchisor. It demonstrates the franchisor's reliance on royalty fees as a source of income, which is directly tied to the success and revenue generation of its franchisees. A higher royalty fee income generally indicates a larger and more successful network of franchisees.
It's important to note that this figure is just one component of Ledgers's overall financial performance. A prospective franchisee should also consider other revenue sources, operating expenses, and overall profitability to gain a comprehensive understanding of the franchisor's financial health. Additionally, comparing this figure to previous years and industry benchmarks can provide valuable context.