What was the write off of notes receivable, net of deferred revenue for Ledgers in 2023?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
,914 | | Net loss | | (447,527) | (447,527) | | Balances, December 31, 2022 | 3,200,000 | (1,495,613) | 1,704,387 | | Adoption of Topic 326 | | (42,286) | (42,286) | | Net loss (Restated) | | (506,600) | (506,600) | | Balances, December 31, 2023 (Restated) | 3,200,000 | (2,044,499) | 1,155,501 | | Net loss | | (361,991) | (361,991) | | Balances, December 31, 2024 | $ 3,200,000 | $ (2,406,490) | $ 793,510 |
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Statements of Cash Flow
For the Years Ended December 31, 2024, 2023, and 2022
| | | 2024 | 2023 | | 2022 | |-----------------------------------------
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the write off of notes receivable, net of deferred revenue, was $226,854 in 2023. This figure reflects adjustments made to reconcile the net loss to net cash used in operating activities.
This write-off indicates that Ledgers had to account for uncollectible amounts from notes receivable, potentially due to franchisees defaulting on their obligations or other factors affecting their ability to pay. The deferred revenue component suggests that Ledgers had initially recognized revenue that it could no longer reasonably expect to earn, leading to the write-off.
For a prospective franchisee, this information highlights the importance of understanding Ledgers' financial stability and its approach to managing receivables and revenue recognition. It also underscores the potential risk of franchisee defaults and the impact on Ledgers' financial performance. Franchisees should inquire about the specific reasons for these write-offs and Ledgers' strategies for mitigating such losses in the future.