What were the members' distributions for Aw for the year ending December 31, 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 members' distributions for the year ending December 31, 2023, were $(147,512). This means that Aw distributed $147,512 to its members during that year. Members' distributions represent the funds distributed to the owners or members of the LLC from the company's profits or capital.
For a prospective franchisee, understanding members' distributions can provide insight into the financial management and profitability of Aw. While distributions don't directly impact a franchisee's operations, they reflect the financial health of the franchisor, which can indirectly affect the support and resources available to franchisees.
It's important to note that members' distributions are not necessarily indicative of the overall financial performance of the franchise system. Factors such as reinvestment in the company, debt obligations, and strategic decisions can influence distribution amounts. A potential franchisee should consider this figure in conjunction with other financial metrics, such as revenue, net income, and cash flow, to gain a comprehensive understanding of Aw's financial stability.