How does Aw's franchise fee revenue in 2024 compare to its franchise fee revenue in 2023?
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 franchise fee revenue decreased from 2023 to 2024. In 2023, Aw's franchise fee revenue was $8,250, while in 2024, it was $8,000. This represents a decrease of $250 in franchise fee revenue from one year to the next.
This decrease in franchise fee revenue could be due to a number of factors, such as fewer new franchises being sold in 2024 compared to 2023. It could also indicate changes in the franchise fee structure or promotional discounts offered during that year. A prospective franchisee should investigate the reasons behind this change to understand the potential trends in Aw's franchise sales.
It's important to note that while franchise fee revenue decreased, Aw's net income increased from $136,397 in 2023 to $158,996 in 2024. This suggests that while initial franchise fees may have been slightly lower, other revenue streams or cost management strategies contributed to a higher overall profit for Aw. Reviewing the complete financial statements and asking Aw about their revenue model would provide a clearer picture.
Overall, while the decrease in franchise fee revenue is a point to consider, it should be evaluated in the context of Aw's overall financial performance. A potential franchisee should look at the broader financial picture and ask Aw for more details about their franchise sales and revenue strategies to make an informed decision.