What was the members' equity (deficit) for Aw as of December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
A PC Westbury, NY April 10, 2025
BALANCE SHEETS RAYYAN PIZZA FRANCHISE LLC
| ASSETS | |||
|---|---|---|---|
| YEARS ENDED DECEMBER 31 2024 | 2023 | ||
| Assets | |||
| Cash | $ 8,494 | $ | 4,705 |
| Due from franchisee | — | 7,837 | |
| Due from related parties | 51,502 | 51,502 | |
| Total Assets | $ 59,996 | $ | 64,044 |
| Current Liabilities | |||
| Loan payable SBA | $ 532 | $ | 513 |
| Loan payable WinTrust | 10,073 | 10,073 | |
| Contract Liability | 6,875 | 8,000 | |
| Total Current Liabilities | 17,480 | 18,586 | |
| Long Term Liabilities | |||
| Loan payable SBA, net of current | 28,382 | 27,341 | |
| Contract Liability, net of current | 10,625 | 17,500 | |
| Members' Equity (Deficit) | 3,509 | 617 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the members' equity as of December 31, 2024, was $3,509. This figure represents the ending balance of members' equity after accounting for the beginning balance, net income, and members' distributions. In 2023, the members' equity was $617.
Members' equity is a critical indicator of the financial health of Aw. It represents the ownership stake of the members in the company. A positive members' equity suggests that the company's assets exceed its liabilities, while a negative equity (deficit) indicates the opposite. The change in members' equity from $617 in 2023 to $3,509 in 2024 reflects the net effect of the company's profitability and distributions to its members.
For a prospective Aw franchisee, this information is useful for assessing the financial stability and profitability of the franchisor. A consistent growth in members' equity could indicate effective management and a healthy business model. However, it's essential to consider this figure in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the franchise opportunity. Reviewing the complete financial statements and consulting with a financial advisor is recommended to make an informed investment decision.