Ledgers Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Ledgers is a financial services franchise providing tax preparation, bookkeeping, and advisory services to individuals and small businesses. Franchisees run local offices, managing client accounts and service delivery.
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). FranchiseVerdict grade: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $48K – $90K
- 18th pct Financial Ser…
- Avg gross sales
- N/A
- 2 outlets
- Royalty
- 10.0%
- 7th pct Financial Ser…
- Units
- 2
- 9th pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $48K – $90K including a $35K franchise fee, 10.0% ongoing royalty.
- RETURNSFigures from audited financial statements of Loyalty Business Services, LLC (formerly Fide Holding, LLC), the sole franchisor entity, for the fiscal year ended December 31, 2024 (yr1) with prior year ended December 31, 2022 (yr2). Stated in whole US dollars (not scaled). Total revenue 2024 = $92,871, comprising initial franchise fees $30,336, royalty fees $36,056, and other income $26,479. Net loss of $(361,991). Balance sheet reconciles: total liabilities $978,945 + members' equity $793,510 = total assets $1,772,455. The 2023 financial statements were restated (Note 9). Auditor: Barnard, Robinson & Company, LLP, Raleigh, NC, report dated April 28, 2025.
- RISKVerdict F (Weakest tier), verdict score 19/100 (higher is better).
- LEGAL12 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Loyalty Business Services LLC
- Parent company
- Loyalty, LLC
- CEO title
- Interim Chief Executive Officer
- Mary Jane DeJaager
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452
- Auditor
- Barnard, Robinson & Company, LLP
- Audited financials
- Franchisor revenue
- $93K
- vs $193K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Mary Jane DeJaager
- Headquarters
- VA
- Founded
- 2019
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical financial services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 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
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $15K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 10.0%
- percentage · 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 |
| Inventory (initial) | $500 – $2K |
| Total fee load | 13.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Ledgers did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Ledgers unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
95%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Figures from audited financial statements of Loyalty Business Services, LLC (formerly Fide Holding, LLC), the sole franchisor entity, for the fiscal year ended December 31, 2024 (yr1) with prior year ended December 31, 2022 (yr2). Stated in whole US dollars (not scaled). Total revenue 2024 = $92,871, comprising initial franchise fees $30,336, royalty fees $36,056, and other income $26,479. Net loss of $(361,991). Balance sheet reconciles: total liabilities $978,945 + members' equity $793,510 = total assets $1,772,455. The 2023 financial statements were restated (Note 9). Auditor: Barnard, Robinson & Company, LLP, Raleigh, NC, report dated April 28, 2025.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 13.0% — below the Financial Services average of 17.0%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System shrank 75.0% over 3 years. Ask existing franchisees about local market conditions.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Financial Services averages
How Ledgers Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- -75.0%
- Net unit change over 3 years
- 3-yr CAGR
- -75.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 4
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Multiple cases involving John T. Hewitt (CEO of parent Loyalty, LLC): 2 pending arbitration/litigation cases (investor fraud claims and joint venture fraud claims directly naming the franchisor); multiple concluded cases related to Liberty Tax, shareholder derivative suits, employment disputes, and a DOJ settlement regarding tax compliance. A California consent order requires ongoing disclosure.
Largest disclosed settlement: $775,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Barnard, Robinson & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 19 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 13.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| 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 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia |
| Jury trial waiver | Yes |
| Governing law | VA |
| Litigation count | 12 |
View Item 3 litigation summary
Multiple cases involving John T. Hewitt (CEO of parent Loyalty, LLC): 2 pending arbitration/litigation cases (investor fraud claims and joint venture fraud claims directly naming the franchisor); multiple concluded cases related to Liberty Tax, shareholder derivative suits, employment disputes, and a DOJ settlement regarding tax compliance. A California consent order requires ongoing disclosure.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- Virginia Beach, Virginia or online
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
- 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
3 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 Item 19 in the Ledgers FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ledgers FDD and qualifies whose outlets they describe.
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 verdict score of 19 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Ledgers, you can request corrections or provide updated information.
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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.