What was the amount of the Loan payable SBA, net of current, for Aw as of December 31, 2022?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | ||
|---|---|---|
| YEARS ENDED DECEMBER 31 | ||
| 2023 | 2022 | |
| Assets | ||
| Cash | $ 4,705 | $ 33,561 |
| Due from franchisee | 7,837 | 1,226 |
| Due from related parties | 51,502 | 51,502 |
| Total Assets | $ 64,044 | $ 86,289 |
| LIABILITIES AND MEMBERS' EQUITY (DEFICIT) | ||
| Current Liabilities | ||
| Accounts payable and accrued expenses | $ — | $ 4,834 |
| Loan payable SBA | 513 | 476 |
| Loan payable WinTrust | 10,073 | 10,073 |
| Contract Liability | 8,000 | 8,250 |
| Total Current Liabilities | 18,586 | 23,633 |
| Long Term Liabilities | ||
| Loan payable SBA, net of current | 27,341 | 25,424 |
| Contract Liability, net of current | 17,500 | 25,500 |
| Members' Equity (Deficit) | 617 | 11,732 |
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, net of current, was $25,424 as of December 31, 2022. This figure represents the long-term portion of the loan Aw obtained from the U.S. Small Business Administration (SBA), meaning the amount due beyond the next 12 months. The current portion of the loan, which is due within the next year, is listed separately under current liabilities.
This SBA loan is collateralized by Aw's assets and carries an interest rate of 3.75% with a 30-year term. Monthly payments of $120 were scheduled to begin in 2023. The distinction between current and long-term liabilities is a standard accounting practice that provides a clearer picture of Aw's financial obligations and when they are due.
For a prospective Aw franchisee, understanding the franchisor's debt structure is crucial. Knowing the terms and amounts of outstanding loans, like the SBA loan, helps in assessing the financial stability of Aw. It also provides context for how Aw manages its finances and invests in the growth of the franchise system. Reviewing the notes to the financial statements provides additional details on the loan terms, collateral, and repayment schedule.