factual

What strategic relationship did Ledgers enter into in 2025 to generate new franchisee referrals?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

CES, LLC (FORMERLY FIDE HOLDING, LLC) Notes to Financial Statement

NOTE 9 - PRIOR PERIOD ADJUSTMENT (Continued)

The effect of these restatement is to decrease members' equity as of January 1 as follows:

Previously As
2023 Restatement Reported Restated
Members' equity - January 1, 2024 $1,374,619 $1,155,501
Notes Receivable 792,878 40,760
Deferred Revenue 680,989 147,989
Bad Debt Expense 75,206 294,324
Net loss (287,482) (506,600)

NOTE 10 - GOING CONCERN CONSIDERATIONS

As of December 31, 2024, the Company had negative working capital of $468,670. For the year ended December 31, 2024, the Company had operating losses of $490,281 and negative operating cash flows of $471,328. Ma

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, the company entered into a strategic relationship with Bookkeeping Express in 2025. The purpose of this relationship is to generate new franchisee referrals for Ledgers. This is part of Ledgers' strategy to address financial concerns, as the company had negative working capital and operating losses as of December 31, 2024.

This strategic move is intended to support the company until new franchisee agreements become effective in May 2025. By securing new franchisee referrals through the relationship with Bookkeeping Express, Ledgers aims to improve its financial stability and meet its liquidity needs.

For a prospective franchisee, this relationship indicates that Ledgers is actively seeking to expand its network and support its franchisees. It also suggests that Ledgers is taking steps to address its financial challenges and ensure the long-term viability of the franchise system. This could be a positive sign for potential franchisees, as it demonstrates Ledgers' commitment to growth and stability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.