LedgersFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Ledgers franchise requires a total initial investment of $48K – $90K, including a $35K franchise fee and an ongoing 10.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $48K – $90K
- 19th pct Financial Ser…
- Avg gross sales
- N/A
- 30th pct Financial Ser…
- Royalty
- 10.0%
- 9th pct Financial Ser…
- Units
- 2
- 9th pct Financial Ser…
- SBA default
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = >15% above Financial Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system contracted 50% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
10 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $48K – $90K including a $35K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Loyalty Business Services LLC
- Parent company
- Loyalty, LLC
- CEO title
- Chief Executive Officer (Interim)
- Mary Jane DeJaager
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452
- Auditor
- Bernard Robinson & Company, L.L.P.
- Audited financials
- Franchisor revenue
- $193K
- vs $93K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Ledgers franchisees operate tax preparation and accounting service centers, serving individual and small business clients with tax filing, bookkeeping, and financial advisory services. Day-to-day operations involve client intake, tax return preparation, financial statement compilation, and compliance advisory. The model relies on seasonal tax season demand and year-round accounting service revenue.
- CEO
- Mary Jane DeJaager
- Headquarters
- VA
- Founded
- 2019
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Construction & Leasehold Improvements | $0 | $10K | |
| Furniture, Fixtures and Equipment | $0 | $7K | |
| Interior & Exterior Signage | $0 | $3K | |
| Rent and Security Deposit | $0 | $6K | |
| Software and Software Support Services | $100 | $500 | |
| Computer Systems & Connectivity | $3K | $4K | |
| Training Travel and Living Expenses | $1K | $2K | |
| Opening Inventory & Supplies | $500 | $2K | |
| Permits and Licenses | $700 | $700 | |
| Utilities | $500 | $1K | |
| Insurance | $400 | $500 | |
| Professional Fees | $3K | $4K | |
| Additional Funds - 3 months | $5K | $15K | |
| Total initial investment | $48K | $90K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $48K – $90K
- Better than avg vs category
- Liquid capital req'd
- $5K – $15K
- Better than avg vs category
- Franchise fee
- $15K – $35K
- Better than avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 13.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $5K |
| Total fee load | 13.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Financial Services averages
How Ledgers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 1
- Last reporting year
- Closed
- N/A
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 150% (!)
- Closures exceed total units. See FDD Item 20
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- -50.0%
- Net unit change last year
- 3-yr CAGR
- -75.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ledgers presents high risk due to catastrophic unit decline, pending fraud litigation, undisclosed financial performance, and going concern status—this franchise system appears to be collapsing with serious governance issues.
Litigation (Item 3)
Three cases involving CEO John T. Hewitt and Loyalty, LLC: (1) Pending - Lubert/Martinson v. Hewitt/ATAX/Loyalty (May 2025) alleging QOZB fraud, breach of fiduciary duty, conversion, and unauthorized cash withdrawals; (2) Pending - Fortis Lux/Tutum v. Loyalty/Ledgers (May 2025 arbitration) alleging fraud in joint venture and breach of contract; (3) Concluded - JTH Tax/Liberty Tax v. Hewitt/Loyalty/ATAX (settled Dec 2021) involving trademark infringement, tortious interference, trade secret misappropriation, and unfair competition; settlement required $545,000 payment over 6 years and non-compete restrictions.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bernard Robinson & Company, L.L.P.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 100 / 100 rating
- 01MED50% unit decline year-over-year indicates systemic franchise failure and severe market contraction
- 02HIGHPending litigation alleging fraud and breach of contract raises serious governance and trustworthiness concerns
- 03MEDNo disclosed average revenue or net income prevents assessment of franchisee profitability and ROI
- 04HIGHJohn Hewitt litigation history and Liberty Tax connection suggest pattern of legal and operational problems
- 05HIGHGoing concern status indicates potential insolvency and franchisor sustainability risk
- 06MEDHigh 10% royalty rate on undisclosed revenues creates opacity and cash flow risk for franchisees
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic region defined by zip codes, natural, or political boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 65,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 10 |
View Item 3 litigation summary
Three cases involving CEO John T. Hewitt and Loyalty, LLC: (1) Pending - Lubert/Martinson v. Hewitt/ATAX/Loyalty (May 2025) alleging QOZB fraud, breach of fiduciary duty, conversion, and unauthorized cash withdrawals; (2) Pending - Fortis Lux/Tutum v. Loyalty/Ledgers (May 2025 arbitration) alleging fraud in joint venture and breach of contract; (3) Concluded - JTH Tax/Liberty Tax v. Hewitt/Loyalty/ATAX (settled Dec 2021) involving trademark infringement, tortious interference, trade secret misappropriation, and unfair competition; settlement required $545,000 payment over 6 years and non-compete restrictions.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- franchisor facility and on-site
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- POS system
- Loyalty Accounting System (Intuit), Dext, Financial Cents, Loyalty Tax (Crosslink)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Loyalty Accounting System (Intuit), Dext, Financial Cents, Loyalty Tax (Crosslink)
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ledgers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ledgers franchise?
The total investment to open a Ledgers franchise ranges from $48K – $90K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ledgers franchise owners earn?
Ledgers does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Ledgers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ledgers (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Ledgers franchise locations are there?
As of their most recent FDD filing, Ledgers has 2 total units in the United States, including 2 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Ledgers a good franchise to buy?
FranchiseVerdict rates Ledgers as a F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.