What was the royalty receivables amount for Ledgers in 2023?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
| | 2024 | 2023 | 2022 | | | | | | Current Assets: | S | | |--|--|--|--| | Cash and cash equivalents | $ 424,085 | $ 181,077 | $ 264,411 | | | | | | Royalty receivables | 3,190 | 3,302 | - | | | | |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the royalty receivables for 2023 were $3,302. This figure represents the amount of royalty fees that Ledgers was owed by its franchisees as of the end of the 2023 fiscal year, which Ledgers expected to collect. Royalty receivables are generated from franchisees and are a key revenue stream for Ledgers.
It is important to note that royalty receivables are subject to potential credit losses. However, as of December 31, 2023, Ledgers' management determined that there was no allowance for credit losses related to royalty receivables. This indicates that Ledgers believed all outstanding royalty receivables were fully collectible at that time.
Prospective franchisees should understand how Ledgers manages and accounts for royalty receivables, as this can impact the company's financial stability and ability to support its franchisees. Understanding the collectibility of these receivables can provide insights into the financial health of Ledgers' franchise system.