What was the net increase in cash for Aw for the year ending December 31, 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 net increase in cash for the company for the year ending December 31, 2023, was a decrease of $28,856. This contrasts with the previous year, 2022, where Aw experienced a net increase in cash of $24,528.
This decrease in cash flow could be a point of interest for potential franchisees. While not inherently negative, a decrease in net cash can indicate changes in the company's financial activities. It is important to consider this figure in the context of Aw's overall financial performance, including revenues, expenses, and profitability.
A prospective franchisee should investigate the reasons behind this decrease by asking Aw for more details. Understanding the factors that contributed to this change will help a franchisee assess the financial stability and future prospects of the franchise. It would be prudent to compare these figures with industry benchmarks to determine if this decrease is within an acceptable range or if it raises any specific concerns.