What was the ending members' equity (deficit) for Aw for the year ending December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| Revenues | |||||
| Franchise fee revenue | $ | 8,000 | $ | 8,250 | |
| Royalties | 190,526 | 203,473 | |||
| Total Revenue | 198,526 | 211,723 | |||
| Operating Expenses | 39,530 | 75,326 | |||
| Net Income | 158,996 | 136,397 | |||
| Members' Equity (Deficit) - Beginning | 617 | 11,732 | |||
| Membe |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the ending members' equity (deficit) for the year ending December 31, 2024, was $3,509. This figure represents the net worth of the company at the end of the fiscal year, reflecting the cumulative effect of revenues, expenses, and distributions to members. In comparison, the ending members' equity (deficit) for the year ending December 31, 2023, was $617.
It's important to note that members' equity can be influenced by several factors, including net income, member distributions, and capital contributions. In Aw's case, the increase in members' equity from $617 in 2023 to $3,509 in 2024 indicates a positive change in the company's financial position. This change could be attributed to higher net income and/or reduced member distributions during the year.
Prospective franchisees should carefully examine the trends in members' equity over multiple years to assess the financial stability and profitability of Aw. A consistent increase in members' equity suggests that the company is generating profits and reinvesting them in the business, which can be a positive sign for potential investors. However, it's also crucial to consider other financial metrics and qualitative factors, such as the company's growth strategy, competitive landscape, and management team, to make a well-informed investment decision.
Furthermore, the FDD also includes additional financial statements such as balance sheets, statements of cash flows, and notes to the financial statements, which provide a more comprehensive view of Aw's financial performance and position. Reviewing these statements in detail can help potential franchisees gain a deeper understanding of the company's financial health and identify any potential risks or opportunities.