What was the total value of notes receivable, including accrued interest, for Ledgers in 2022?

According to Ledgers' 2025 Franchise Disclosure Document, the total value of notes receivable, including accrued interest, was $863,901 in 2022. This figure is derived from the sum of 'Notes receivable - Principal' ($853,748) and 'Notes receivable - Accrued interest' ($10,153).

Notes receivable typically represent money owed to Ledgers by franchisees or area representatives, often related to financing agreements for franchise purchases. The inclusion of accrued interest indicates that this total reflects not only the principal amount of the notes but also the interest that has accumulated on those notes as of the end of 2022.

For a prospective franchisee, this information provides insight into the scale of financing Ledgers has extended to its franchisees. A high value of notes receivable could suggest that Ledgers is actively involved in helping franchisees finance their initial investments. However, it also carries the risk of potential credit losses, as some franchisees may struggle to repay their notes. Therefore, it's important to also consider the allowance for credit losses, which, while not specified for 2022 in the provided excerpt, is a factor that Ledgers accounts for in its financial statements.

Understanding the nature and terms of these notes receivable, including interest rates and repayment schedules, would be a crucial part of assessing the financial health and practices of Ledgers as a franchisor. A prospective franchisee should inquire about the details of these financing arrangements and the historical performance of these notes to gauge the potential risks and rewards.