What was the members' equity (deficit) for Aw at the end of 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' equity (deficit) at the end of 2023 was $617. This figure represents the net worth of the company attributable to its members after accounting for all assets and liabilities. It indicates the financial stake the members have in the company at that specific point in time.
For a prospective Aw franchisee, understanding the members' equity is crucial as it provides insight into the financial stability and overall health of the franchisor. A positive and growing members' equity generally suggests that the company is profitable and well-managed, while a deficit might raise concerns about its ability to support its franchisees.
In Aw's case, the members' equity (deficit) ending in 2023 was $617. Reviewing the trend of this value over several years, as presented in the financial statements, can offer a more comprehensive understanding of the franchisor's financial trajectory. It's also important to compare these figures with those of other franchise systems in the same industry to benchmark Aw's financial performance.