What was the contract liability, net of current, for Aw at the end of 2022?

According to Aw's 2025 Franchise Disclosure Document, the contract liability, net of current, at the end of 2022 was $25,500. This figure represents the portion of non-refundable franchise fees that Aw has received but not yet earned as of December 31, 2022, and which will be recognized as revenue over the life of the franchise agreement. This deferred revenue is a liability on Aw's balance sheet until it is recognized as earned revenue.

For a prospective Aw franchisee, this information provides insight into how Aw accounts for franchise fees. The contract liability reflects Aw's obligation to provide services or fulfill other requirements as part of the franchise agreement for which they have already received payment. The fact that this liability is tracked separately, net of current liabilities, suggests that Aw has long-term obligations to its franchisees that extend beyond the current year.

It's important to note that these figures are based on Aw's financial statements, which have been audited by an independent CPA. The auditor's report indicates that the financial statements present fairly the financial position of Aw in accordance with accounting principles generally accepted in the United States of America. This provides a level of assurance regarding the accuracy and reliability of the financial information presented.

Prospective franchisees may want to inquire about the specific services or obligations that are covered by the contract liability. Understanding the nature of these obligations can help franchisees assess the value they are receiving for their franchise fee and the level of support they can expect from Aw over the term of the franchise agreement.