What was the beginning of year cash balance for Aw in 2022?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Members' Equity (Deficit) - Ending | $ 617 | $ 11,732 | | |
STATEMENTS OF CASH FLOWS RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | |||||
|---|---|---|---|---|---|
| Cash Flows from Operating Activities | 2023 | 2022 | |||
| Net Income | $ | 136,397 | $ | 168,681 | |
| Adjustments to reconcile net income to net cash | |||||
| provided by operating activities: | |||||
| Changes in assets and liabilities | |||||
| Due from franchisee | (6,611) | 1,294 | |||
| Due from related parties | — | — | |||
| Accounts payable and accrued expenses | (4,834) | (634) | |||
| Contract Liability | (8,250) 116,702 | (8,250) 161,091 | |||
| Cash Flow from Financing Activities | |||||
| Loan from SBA | 1,954 | — | |||
| Loan from WinTrust | — | 25,624 | |||
| Payments to WinTrust | — | (15,551) | |||
| Cash Flow from Investing Activities | |||||
| Members' (distributions) | (147,512) | (146,636) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the beginning of year cash balance for 2022 was $9,033. This figure represents the amount of cash Aw had available at the start of its fiscal year, which ends on December 31. This cash balance is a key indicator of Aw's financial health and liquidity at the beginning of the year.
For a prospective franchisee, understanding the franchisor's cash position is crucial. A healthy beginning cash balance suggests that Aw is financially stable and capable of supporting its franchisees. It can also indicate the company's ability to invest in new initiatives, technology, or marketing efforts that could benefit the entire franchise system.
However, it's important to consider this figure in conjunction with other financial metrics. For example, a low beginning cash balance might not be a concern if Aw generated significant cash flow throughout the year. Conversely, a high beginning cash balance could be misleading if the company experienced substantial losses or liabilities later on. Therefore, prospective franchisees should review the complete financial statements, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of Aw's financial performance and stability.