What is Aw's management required to evaluate when preparing financial statements?

According to Aw's 2025 Franchise Disclosure Document, when preparing financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Aw's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This evaluation is a critical component of ensuring the accuracy and reliability of the financial statements.

This requirement means Aw's management must assess various factors that could impact the company's financial stability and viability in the near term. These factors might include current and projected financial performance, access to capital, significant business risks, and other relevant considerations. If such conditions or events exist, they must be disclosed in the financial statements, providing transparency to potential investors and franchisees.

For a prospective Aw franchisee, this evaluation provides insight into the financial health and stability of the franchisor. If the management identifies conditions that raise substantial doubt about the company's ability to continue as a going concern, it could signal potential risks for franchisees. These risks might include reduced support from the franchisor, difficulties in maintaining brand standards, or even the potential for the franchise system to collapse. Therefore, it is essential for potential franchisees to carefully review the financial statements and any related disclosures to assess the overall risk associated with investing in an Aw franchise.