What was the total members' equity for Ledgers in 2024?
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 as of December 31, 2024, was $793,510. This figure represents the ownership stake in the company held by its members, reflecting the cumulative capital contributions and accumulated deficit. It's a key indicator of the company's financial health, showing the net worth attributable to its members after accounting for all assets and liabilities.
Specifically, the FDD details that the members' equity is calculated from capital contributions of $3,200,000 and an accumulated deficit of $(2,406,490). This means that while members invested a significant amount, the company's losses over time have reduced the overall equity. The accumulated deficit reflects the total losses Ledgers has incurred since its inception, which have not yet been offset by profits.
Prospective franchisees should pay close attention to this trend. While the initial capital contributions are substantial, the accumulated deficit indicates potential challenges in profitability. It would be prudent for potential franchisees to investigate the reasons behind these losses and understand Ledgers' strategies for improving profitability and increasing members' equity in the future. Understanding the factors contributing to the deficit and the franchisor's plan to address them is crucial for assessing the long-term viability of a Ledgers franchise.