What were the member's distributions for Aw in 2022?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| ficit) | 617 | 11,732 |
|---|
STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIT) RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Revenues | ||||
| Franchise fee revenue | $ 8,250 | $ 8,250 | ||
| Royalties | 203,473 | 240,600 | ||
| Total Revenue | 211,723 | 248,850 | ||
| Operating Expenses | 75,326 | 80,169 | ||
| Net Income | 136,397 | 168,681 | ||
| Members' Equity (Deficit) - Begi |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the member's distributions for the year ending December 31, 2022, were ($146,636). This figure represents the amount of money distributed to the members or owners of the Aw franchise during that year. It is important to note that this is a negative number, indicating that the distributions exceeded the net income for that period.
Member distributions are a key element of understanding the financial dynamics of Aw. Distributions represent the transfer of profits or capital from the business to its owners. A negative distribution, as seen here, could indicate that the company used more cash for distributions than it generated in net income, potentially drawing from retained earnings or other capital sources. This can be a normal occurrence, especially in the early stages of a franchise or during periods of significant investment or expansion.
Prospective franchisees should carefully consider these distribution figures in the context of Aw's overall financial performance. It would be prudent to investigate the reasons behind the negative distribution in 2022. Understanding whether this was a one-time event or part of a trend is crucial for assessing the financial stability and future prospects of the franchise. Reviewing subsequent years' financial statements and discussing these figures with the franchisor can provide valuable insights.
In addition to the member's distributions, the FDD provides a detailed overview of Aw's financial performance, including revenues, operating expenses, net income, and changes in members' equity. Analyzing these figures in conjunction with the distribution data can offer a comprehensive understanding of the franchise's financial health and its potential for profitability.