What was the net increase in cash for Aw in 2022?
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 net increase in cash for the company in 2022 was $24,528. This figure represents the overall change in Aw's cash balance after accounting for all cash inflows (money coming in) and cash outflows (money going out) during that year.
For a prospective franchisee, this number provides insight into Aw's financial health and its ability to manage cash flow. A positive net increase suggests that Aw generated more cash than it spent during the year, which is generally a good sign. However, it's essential to consider this figure in the context of Aw's overall financial performance, including its revenues, expenses, and other financial metrics.
It's also important to note that the net increase in cash can be influenced by various factors, such as changes in operating activities, financing activities (e.g., loans), and investing activities (e.g., distributions to members). Therefore, a prospective franchisee should review the complete statement of cash flows to understand the underlying drivers of the net increase in cash and assess whether it is sustainable in the long term. Reviewing several years of financial statements will give a better picture of the overall trend.