What was the total revenue for Ledgers 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 total revenue for the company in 2023 was $192,630. This revenue is comprised of several sources, including initial franchise fees, royalty fees, commission income, and other income. Initial franchise fees contributed $113,362, royalty fees accounted for $37,528, and other income made up $41,740 of the total. There was no commission income listed for 2023.
For a prospective Ledgers franchisee, understanding the revenue streams of the franchisor is crucial. It provides insight into how the company generates income and the relative importance of different revenue sources. A significant portion of Ledgers' revenue in 2023 came from initial franchise fees, which suggests that the company was actively expanding its franchise network during that period.
However, it's also important to note that the company experienced a net loss of $506,600 in 2023. This loss indicates that the company's expenses exceeded its revenue during the year. While revenue is an important indicator of a company's performance, it's also essential to consider its profitability and overall financial health. Franchisees should investigate further into the reasons for the net loss and the company's plans to improve its financial performance.
In addition to revenue and net loss, the FDD provides information on various operating expenses, such as salaries, wages, advertising, corporate overhead, and franchise recruitment costs. Analyzing these expenses can give prospective franchisees a better understanding of the company's cost structure and how it manages its resources. This information can be valuable in assessing the potential profitability and sustainability of a Ledgers franchise.