What was the net income for Aw for the year ending December 31, 2024?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
| 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 | |||
| Members' (Distributions) | (156,104) | (147,512) | |||
| Members' Equity (Deficit) - Ending | $ | 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 net income for the year ending December 31, 2024, was $158,996. This figure represents the company's profit after deducting all operating expenses from its total revenue. In comparison, Aw's net income for the year ending December 31, 2023, was $136,397.
For a prospective franchisee, net income is a critical indicator of the financial health and profitability of Aw. A higher net income generally suggests a more stable and successful franchise system. It demonstrates Aw's ability to manage its finances effectively and generate profit from its operations.
It is important to note that while this figure provides a snapshot of Aw's financial performance, prospective franchisees should also consider other factors such as revenue trends, operating expenses, and cash flow to gain a comprehensive understanding of the company's financial stability. Reviewing the complete audited financial statements, including the balance sheets and cash flow statements, is essential for a thorough assessment.
Additionally, potential franchisees should investigate the reasons behind the increase in net income from 2023 to 2024. Understanding the factors that contributed to this growth can provide valuable insights into Aw's business strategies and future prospects. Consulting with a financial advisor is recommended to interpret these financial statements in the context of your investment decision.