What were the total operating expenses for Ledgers in 2024?
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 | 7 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the total operating expenses for the company in 2024 were $483,152. The FDD also provides a breakdown of these expenses.
Specific operating expenses for Ledgers in 2024 included salaries, wages, taxes, and benefits totaling $174,839. Advertising and promotions cost $2,750, while corporate overhead expenses amounted to $75,805. Franchise recruitment expenses were $95,587, and technology expenses reached $9,756. Professional fees totaled $84,627, and bad debt expense was $35,657. Other general and administrative expenses accounted for $4,131.
Prospective franchisees should consider these figures in relation to the total revenue of $92,871 for 2024, as this indicates a significant operating loss. Understanding the specific components of these operating expenses can help a potential franchisee assess the financial health and stability of Ledgers. Reviewing these expenses in comparison to previous years (2023 and 2022) can also provide insights into trends and potential areas for cost management or improvement.