What was the change in 'Due from franchisee' 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the 'Due from franchisee' increased by $1,294 in 2022. This figure is part of the changes in assets and liabilities related to cash flows from operating activities.
'Due from franchisee' represents the amount of money that franchisees owe to Aw. An increase in this figure suggests that franchisees, on average, were slower in paying their dues or that the total amount owed by franchisees increased during that year. This could be due to various factors such as delayed payments, increased sales leading to higher royalty obligations, or new franchisees starting operations.
For a prospective Aw franchisee, this information is relevant because it provides insight into the financial interactions between Aw and its franchisees. While a single year's increase may not be alarming, consistent increases in 'Due from franchisee' could indicate potential issues with franchisee profitability or payment compliance. Therefore, it would be wise for a potential franchisee to inquire about the reasons behind these changes and Aw's policies for managing franchisee accounts receivable.