What was the amount of the Loan payable SBA for Aw as of December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
A PC Westbury, NY April 10, 2025
BALANCE SHEETS RAYYAN PIZZA FRANCHISE LLC
| ASSETS | | | | |-------------------------------------------------|-------------------------|----|--------| | | YEARS ENDED DECEMBER 31 2024 | | 2023 | | Assets | | | | | Cash | $ 8,494 | $ | 4,705 | | Due from franchisee | — | | 7,837 | | Due from related parties | 51,502 | | 51,502 | | Total Assets | $ 59,996 | $ | 64,044 | | | | | | | Current Liabilities | | | | | Loan payable SBA | $ 532 | $ | 513 | | Loan payable WinTrust | 10,073 | | 10,073 | | Contract Liability | 6,875 | | 8,000 | | Total Current Liabilities | 17,480 | | 18,586 | | Long Term Liabilities | | | | | Loan payable SBA, net of current | 28,382 | | 27,341 | | Contract Liability, net of current | 10,625 | | 17,500 | | Members' Equity (Deficit) | 3,509 | | 617 | | Total Liabilities and Members' Equity (Deficit) | $ 59,996 | $ | 64,044 |
STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the Loan payable SBA is broken down into both current and long-term liabilities. The current portion of the loan payable to the SBA was $532, while the long-term portion, net of the current amount, was $28,382 as of December 31, 2024. This means the total loan payable to the SBA was the sum of these two amounts.
In 2020, Aw obtained a note payable of $25,900 from the SBA, which is collateralized by the company's assets and bears an interest rate of 3.75% with a 30-year term. Monthly payments of $120 commenced in 2023. The FDD also provides a breakdown of the minimum annual principal payments due on the loan for the years 2025 through 2028, as well as the amount due after 2028.
Prospective franchisees should note that the loan from the SBA is a liability for Aw. Reviewing the repayment schedule and terms of the loan can provide insights into the company's financial obligations and cash flow management. Understanding these liabilities is crucial for assessing the financial health and stability of Aw.