How much did Aw receive as a loan from the SBA in 2023?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Members' Equity (Deficit) - Ending | $ 617 | $ 11,732 | | |
STATEMENTS OF CASH FLOWS RAYYAN PIZZA FRANCHISE LLC
| YEARS ENDING DECEMBER 31 | |||||
|---|---|---|---|---|---|
| Cash Flows from Operating Activities | 2023 | 2022 | |||
| Net Income | $ | 136,397 | $ | 168,681 | |
| Adjustments to reconcile net income to net cash | |||||
| provided by operating activities: | |||||
| Changes in assets and liabilities | |||||
| Due from franchisee | (6,611) | 1,294 | |||
| Due from related parties | — | — | |||
| Accounts payable and accrued expenses | (4,834) | (634) | |||
| Contract Liability | (8,250) 116,702 | (8,250) 161,091 | |||
| Cash Flow from Financing Activities | |||||
| Loan from SBA | 1,954 | — | |||
| Loan from WinTrust | — | 25,624 | |||
| Payments to WinTrust | — | (15,551) | |||
| Cash Flow from Investing Activities | |||||
| Members' (distributions) | (147,512) | (146,636) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the company received $1,954 as a loan from the SBA during the year ending December 31, 2023. This information is part of the cash flow from financing activities reported in the financial statements.
This SBA loan represents a source of financing for Aw. The FDD also notes that during 2020, Aw obtained a note payable of $25,900 from the SBA, which is collateralized by the company's assets and bears interest at 3.75% with a 30-year term. Monthly payments of $120 commenced in 2023. The $1,954 reported in 2023 reflects additional funds received from this existing loan, not a new loan.
Prospective franchisees should note that Aw's financial health and its ability to manage its debt obligations, including the SBA loan, could impact the support and services it provides to franchisees. Reviewing the complete financial statements and understanding the terms of the loan agreements is essential for assessing the financial stability of Aw.