What was the royalty receivables amount for Ledgers in 2024?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
doubt about Loyalty Business Services, LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Bernard Robinson & Company, I.S.P.
Raleigh, North Carolina April 28, 2025
${\bf LOYALTY; BUSINESS; SERVICES,; LLC; (FORMERLY; FIDE; HOLDING,; LLC)}$
Balance Sheets
December 31, 2024, 2023 and 2022
| 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 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the royalty receivables for 2024 were $3,190. This represents the amount of royalty fees that Ledgers was owed but had not yet collected from its franchisees as of the end of the year. Royalty receivables are a current asset on Ledgers' balance sheet, indicating that they are expected to be collected within one year.
In addition to the general royalty receivables, Ledgers had royalty revenue of $8,943 from a franchise agreement with a member of management in 2024, with outstanding royalty receivables of $560 related to this agreement at the end of the year. This related-party transaction suggests that Ledgers may have specific agreements or arrangements with its management team regarding franchise ownership and royalty payments.
It is important to note that Ledgers' management has determined that there is no allowance for credit losses related to royalty receivables as of December 31, 2024, 2023, and 2022. This means that Ledgers believes it will collect the full amount of its outstanding royalty receivables and has not set aside any reserves for potential uncollectible amounts. A prospective franchisee should inquire about Ledgers's policies for managing and collecting royalty fees, as well as the criteria used to determine the allowance for credit losses.