What was the total amount Ledgers spent on advertising and promotions in 2023?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
venue | 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 | | | | |
LOYALTY BUSINESS SERVICES, LLC (FORMERLY FIDE HOLDING, LLC) Statements of Operations
For the Years Ended December 31, 2024, 2023, and 2022
| 20 | 24 | - | 2023 | 2022 | ||
|---|---|---|---|---|---|---|
| Revenue: | ||||||
| Initial franchise fees | $ . | 30,336 | $ | 113,362 | $ | 114,383 |
| Royalty fees | í | 36,056 | 37,528 | 49,019 | ||
| Commission income | = | = | 21,000 | |||
| Other | 26,479 | - | 41,740 | 176,466 | ||
| Total revenue | 92,871 | 192,630 | 360,868 | |||
| Operating expenses: | ||||||
| Salaries, wages, taxes and benefits | 1 | 74,839 | 449,440 | 425,683 | ||
| Advertising and promotions | 2,750 | 9,910 | 19,784 | |||
| Corporate overhead expense | 1' | 75,805 | 109,334 | 58,370 | ||
| Franchise recruitment | 9 | 95,587 | 50,925 | 128,533 | ||
| Technology expense | 9,756 | 40,525 | 248,337 | |||
| Management fees | - | 15,000 | - | |||
| Professional fees | : | 84,627 | 13,327 | 61,406 | ||
| Bad debt expense | í | 35,657 | 294,324 | - | ||
| Other general and administrative e |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the company's total spending on advertising and promotions for the year ending December 31, 2023, was $9,910. This figure reflects the expenses Ledgers incurred for advertising and promotional activities during that specific year.
For a prospective franchisee, this information provides insight into the level of investment Ledgers is willing to make in advertising and promotions at the corporate level. It is important to note that franchisees are also required to contribute to the Advertising Fund, as detailed elsewhere in the FDD, which would supplement this corporate spending. The FDD specifies that franchisees contribute 3% of the previous month's Gross Revenues into the Advertising Fund monthly.
However, the FDD also states that the Advertising Fund is not audited, although unaudited financial statements of the Advertising Fund are available upon written request. This lack of auditing may be a concern for some franchisees, as it means there is less independent oversight of how the advertising funds are being managed and spent. Prospective franchisees may want to inquire further about the allocation and effectiveness of these advertising expenditures to better understand the potential return on their investment.
It is also important to consider that Ledgers is not required to spend any amount on advertising in the area or Territory where a franchisee will be located. This means that while Ledgers does spend money on advertising and promotions at the corporate level, there is no guarantee that any of that money will be spent in a particular franchisee's territory. Therefore, franchisees need to be prepared to invest their own time and money in local advertising and promotions to support their business.