On what are Aw's income and expenses reported?

According to Aw's 2025 Franchise Disclosure Document, the company has elected to be taxed as a limited liability corporation for federal and state income tax purposes. As a result, Aw's income and expenses pass through directly to the members and are reported on their individual income tax returns. This means that the company itself does not pay income taxes directly; instead, the responsibility for reporting and paying taxes on the income generated by the company falls on its members.

For a prospective Aw franchisee, this pass-through taxation structure has significant implications. The franchisee, as a member of the LLC, will need to include their share of the company's income and expenses on their personal tax returns. This requires careful tracking of all financial transactions and coordination with a tax professional to ensure accurate reporting and compliance with tax laws. Franchisees should be aware of their obligations to report and pay income taxes on their share of Aw's earnings.

This type of tax structure is common for LLCs and S corporations, where the business income is taxed at the individual level rather than the corporate level. Franchisees should consult with a tax advisor to understand the specific tax implications and reporting requirements related to their ownership in the Aw franchise.