What was the total members' equity for Ledgers in 2022?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
) | | (82,735) | | (6,284) | | Other income | | = | | (115,395) | | 554 | | Other expense | | 485 | | 4,014 | | 3,246 | | Total other (income) expense | (2 | 24,290) | | (194,116) | _ | (2,484) | | Loss before income taxes | (4 | 65,991) | | (604,600) | | (600,527) | | Income tax benefit | (1 | 04,000) | | (98,000) | , | (153,000) | | Net loss | $ (30 | 61,991) | $ | (506,600) | $ | (447,527) |
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Statements of Changes in Members' Equity
For the Years Ended December 31, 2024, 2023, and 2022
| | Capital Contributions | Accumulated Deficit | Total | |----------------------
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the total members' equity in 2022 was $1,704,387. This figure represents the net worth of Ledgers, calculated by subtracting total liabilities from total assets. It reflects the cumulative investment of the members in the company, including initial contributions and retained earnings or losses.
For a prospective franchisee, understanding the members' equity is crucial as it provides insight into the financial stability and overall health of Ledgers. A higher members' equity generally indicates a stronger financial position, suggesting that the company has sufficient assets to cover its liabilities. This can be a reassuring factor for franchisees who are considering investing in the brand.
However, it's also important to consider the trend in members' equity over time. In Ledgers' case, the members' equity decreased from $2,151,914 on January 1, 2022, to $1,704,387 on December 31, 2022. This decrease was primarily due to a net loss of $447,527 during the year. While a single year's loss isn't necessarily alarming, prospective franchisees should investigate the reasons behind the loss and assess whether it's a temporary setback or a sign of deeper financial issues.
Additionally, the FDD notes a prior period adjustment related to the 2023 financial statements, indicating a restatement of members' equity. This restatement further emphasizes the importance of carefully reviewing the financial statements and understanding any adjustments or changes that may impact the reported figures. Potential franchisees should seek clarification from Ledgers regarding the reasons for the restatement and its implications for the company's financial performance.