What was the change in 'Due from franchisee' 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 'Due from franchisee' changed by ($6,611) in 2023, compared to $1,294 in 2022. This represents the changes in assets and liabilities related to amounts owed to Aw by its franchisees.
The negative value of ($6,611) in 2023 indicates a decrease in the amount due from franchisees compared to the previous year. This could be due to franchisees paying off outstanding balances, adjustments in payment terms, or other factors affecting the franchisees' financial obligations to Aw. Conversely, the positive value of $1,294 in 2022 suggests an increase in the amounts owed to Aw by franchisees during that year.
Potential Aw franchisees should consider these figures as indicators of the financial interactions between the company and its franchisees. Understanding the reasons behind these changes can provide insights into the financial health and payment behaviors within the Aw franchise system. It would be prudent for prospective franchisees to inquire about the specific factors contributing to these fluctuations and how Aw manages its receivables from franchisees.