What were the royalty fees collected by 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 fees collected in 2022 were $49,019. This figure represents the total royalty revenue Ledgers received from all of its franchisees during that year.
For a prospective franchisee, this number provides insight into the revenue streams of Ledgers as a franchisor. Royalty fees are a primary source of income for Ledgers, and understanding the historical trends can help potential franchisees assess the financial stability and growth of the franchise system. A consistent or increasing trend in royalty fees may indicate a healthy and expanding franchise network.
It's important to note that this figure reflects the total royalties collected across the entire Ledgers franchise system. Individual franchisee royalty payments would vary based on their gross revenue, as the royalty fee is 10% of gross revenue. Therefore, while this aggregate number is useful, prospective franchisees should also focus on the specific royalty obligations outlined in the franchise agreement and consider their own projected revenues when evaluating the financial aspects of the franchise.