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What was the amount of royalties Aw collected for the year ending December 31, 2023?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

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STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC

YEARS ENDING DECEMBER 31
2024 2023
Revenues
Franchise fee revenue $ 8,000 $ 8,250
Royalties

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)

What This Means (2025 FDD)

According to Aw's 2025 Franchise Disclosure Document, the royalties collected for the year ending December 31, 2023, amounted to $203,473. This figure represents the income Aw received from its franchisees based on a percentage of their sales or other agreed-upon metrics, as outlined in the franchise agreement. Royalties are a primary revenue stream for Aw.

For a prospective Aw franchisee, understanding the royalty structure is crucial. This financial statement provides transparency into the franchisor's earnings and can help potential franchisees evaluate the financial health and stability of the franchise system. It's important to note that royalty payments are ongoing obligations, typically paid regularly (e.g., weekly or monthly), and are a significant factor in determining the profitability of the franchise.

Reviewing royalty trends over multiple years, as presented in the FDD, allows potential franchisees to assess the consistency and growth of Aw's royalty income. A steady or increasing royalty income generally indicates a healthy and expanding franchise system. However, it is also important to consider external factors, such as economic conditions or industry trends, that may influence royalty revenues. Comparing Aw's royalty revenue to similar franchises can provide further insights into its competitive position and financial performance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.