What was the total amount of Ledgers' accounts receivable from related parties as of December 31, 2022?
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 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the amount due from related parties as of December 31, 2022, was $1,320,815. This figure is part of the non-current assets listed on the balance sheet.
This indicates the total amount of money owed to Ledgers by individuals or entities with a close relationship to the company, such as owners, members, or affiliates. These amounts are classified as non-current assets, suggesting that they are not expected to be converted into cash within one year.
For a prospective franchisee, this related-party receivable balance is an indicator of the financial interactions between Ledgers and its related parties. While not inherently negative, a high balance of receivables from related parties can raise questions about the company's financial management and the nature of these transactions. It would be prudent for a potential franchisee to seek clarification from Ledgers regarding the specifics of these related-party transactions, including their terms, collectibility, and business purpose, to fully understand their implications.