What was the beginning of year cash balance for Aw in 2023?
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 2023 was $33,561. This figure represents the amount of cash Aw had at the start of the 2023 fiscal year, which is an important indicator of the company's financial health and liquidity.
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 technologies, marketing initiatives, or other resources that benefit the franchise system.
However, it's important to consider this figure in conjunction with other financial data, such as revenues, expenses, and liabilities, to get a comprehensive view of Aw's financial performance. A high beginning cash balance does not guarantee future success, and franchisees should also assess the company's overall profitability and cash flow management. Reviewing these figures over several years, as presented in the FDD, provides a more complete picture of Aw's financial trends.