As of December 31, 2024, what was the amount of non-refundable franchise fees received but not yet earned by Aw?

According to Aw's 2025 Franchise Disclosure Document, as of December 31, 2024, the non-refundable franchise fees received but not yet earned were $17,500. These fees are treated as deferred revenues, meaning Aw recognizes them over the life of the franchise agreement, in accordance with accounting standards. This indicates that Aw has an obligation to provide services or fulfill other requirements under the franchise agreement in the future to earn this revenue.

For a prospective Aw franchisee, this deferred revenue represents a future obligation for Aw. The franchisor must provide ongoing support, training, or other services to justify recognizing this revenue over the term of the franchise agreement. The fact that the fees are non-refundable means that franchisees are not entitled to a refund of this amount, even if the franchise is terminated early.

It's worth noting that the amount of non-refundable franchise fees received but not yet earned decreased from $25,500 in 2023 to $17,500 in 2024. This decrease could be due to Aw recognizing more revenue from franchise fees during 2024 as they fulfilled their obligations to franchisees, or it could reflect a change in the number of new franchises sold and the timing of revenue recognition.