table_specific

What was the ending members' equity (deficit) for Aw for the year ending December 31, 2024?

Aw Franchise · 2025 FDD

Answer from 2025 FDD Document

_page_103_Picture_0.jpeg)

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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.